Soletraders And Partnerships

Question 1

What is a sole trader

Answer 1

Independent business where a single owner has all responsibility for the decision making.

Question 2

Advantages of sole trader

Answer 2

Not having to worry about managers telling them what to do
Personal service
Flexibility

Question 3

Disadvantages of sole trader

Answer 3

Unlimited liability
No business experience
Business sales decrease if not there
Lots of hard work

Question 4

What is unlimited liability

Answer 4

Owners of the business are seen as the same legal identity

Question 5

What is a partnership

Answer 5

Business is owned by 2 or more people(2-20). Both make decisions and share profit

Question 6

Examples of partnerships

Answer 6

Doctors, solicitors,accountants

Question 7

What is product differentiation

Answer 7

Making your product different from your competitors

Question 8

Advantages of partnership

Answer 8

Easier to work
All the pressure is not on one person
Increased opportunity to raise finance

Question 9

Disadvantage of partnership

Answer 9

Shared profit
Deed of partnership
Sharing can lead to disputes which can affect the business