Soletrader Flashcards
1
Q
What is an unincorporated business
A
There is no legal difference between the owner and the business
He has unlike liability fir the business actions
2
Q
What is an incorporated business
A
There is a legal difference between the owner and the business
The company has a set legal identity
3
Q
What is a sole trader
A
It is a business owned and ran by one individual
4
Q
What are advantages of being a sole trader
A
- make their own decisions
- his own boss
- easier to coordinate
- keep the profit
- easy and cheap to set up
- financial information is kept private
5
Q
What are disadvantages of being a sole trader
A
- unlimited liabilities
- harder to grow
- lot of competition
- may not have expertise (lead to wrong decisions)
- long work hours
- in case of illness they may need to close
