Types Of Business Organisations Flashcards

1
Q

What is a sole trader?

A

A person who owns and controls. his/ her own business.

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2
Q

Give 5 examples of a sole trader.

A
Hairdresser.
Retailers.
Farmers.
Carpenters.
Plumbers.
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3
Q

What are the legalities of a sole trader?

A

Business Names Act 1963.
Health and Safety.
Self- employed taxation system.
Register for VAT.

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4
Q

What are the advantages of being a sole trader?

A

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.

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5
Q

What are the disadvantages of being a sole trader?

A

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.

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6
Q

What is a partnership?

A

The relationship that exists between people carrying on a business with a view to making a profit.

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7
Q

What are examples of partnerships?

A

Accountants.

Solicitors.

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8
Q

What are the legalities of a partnership?

A

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9
Q

What are the opportunities of a partnership?

A

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10
Q

What are the challenges of a partnership?

A

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