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  • Business ownership
    • Sole Trader-Small business, owned and run by one person (though they may employ a few staff). Eg. Window Cleaner, Florist, Hairdresser.
      • Benefits
        • low start up cots
        • owner keeps all profits
        • owner has full control so makes all the decisions
        • owner is boss own
        • easy to set up and only for tax purposes
      • Drawbacks
        • unlimited liability
        • High risk of failure
        • Work long hours
        • difficulties raising money
        • No separate legal identity from the owner so legal for any suing
    • Partnership- A business with 2-20 owners (called Partners). The Partners must set up a partnership agreement (or contract) called a Deed of Partnership which states how much each partner has contributed, everyone’s role, and how the profits will be divided. Eg. Dentist, Solicitor
      • Benefits
        • More simple to set up than a company
        • More sources of finance than sole trader – all partners can invest money
        • Shared responsibility
        • Shared workload
      • Drawbacks
        • Shared workload
        • Harder to raise more finance than an LTD or PLC
        • Partners may disagree
        • Profits are shared
        • No separate legal identity from the owners (ie: partners are the business so can sue or be sued for example)


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