business
- Created by: katier1234
- Created on: 11-11-19 16:34
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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
- Benefits
- 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)
- Benefits
- Sole Trader-Small business, owned and run by one person (though they may employ a few staff). Eg. Window Cleaner, Florist, Hairdresser.
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