Types Of Organisation 1 Flashcards
How do sole traders obtain finance?
They can use their own savings
Obtain money form government grants
Also form bank loans.
Describe a sole trader
A sole trader is a one-owner-business, it is owned and controlled by one person.
What’s are some the aims,features, advantages and disadvantages to being a sole trader.
Work could stop if the sole trader is ill and also business trading could cease is the owner dies.
It so you’d be hard to get time off work.
It would be probable that limited finance would available.
The owner is responsible for all business debts, which is unlimited liability.
What is Limited Liability Partnership?
1st: Liability is limited to the amount of money invested in the business and to any personal guarantees given to raise finance.
2nd: it could be viewed ad a hybrid between limited liability companies and traditional partnerships, because they offer the limited liability available to the limited companies shareholders with the tax regime and flexibility available to partnerships.
3rd: other businesses could also benefit form using LLP’s , particularly new start-ups that were originally going to form limited companies.
