Types Of Business Organisations Flashcards
What is a sole trader?
A person who owns and controls. his/ her own business.
Give 5 examples of a sole trader.
Hairdresser. Retailers. Farmers. Carpenters. Plumbers.
What are the legalities of a sole trader?
Business Names Act 1963.
Health and Safety.
Self- employed taxation system.
Register for VAT.
What are the advantages of being a sole trader?
They are their own boss and keeps profits- this acts as a motivational tool.
They make their own decisions- they have full control of their business.
They are easy to establish- there are no legal complications.
What are the disadvantages of being a sole trader?
They have unlimited liability- the person may lose private wealth.
They suffer all loses- bare the risks solely.
Needs skills in several areas- the person must be multi- talented.
Long hours- needs to always be available.
What is a partnership?
The relationship that exists between people carrying on a business with a view to making a profit.
What are examples of partnerships?
Accountants.
Solicitors.
What are the legalities of a partnership?
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What are the opportunities of a partnership?
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What are the challenges of a partnership?
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