Business studies unit 1

  • Created by: study4321
  • Created on: 25-02-18 18:16
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  • Sole trader
    • fully owned by one person
    • Unlimited liability
      • If business goes bankrupt what is invested in the business is lost and personal assets can also be used
    • simple start up
    • Advantages
      • Owner takes all profits = motivating
      • Owner has total control = faster decision making
      • Owner can keep accounts private = competitors can't see
      • Closer contacts with customers = loyalty, return purchases
    • Disadvantages
      • Limited opportunities for economies of scale
      • No continuity of existence = when the owner dies the business dies with it
      • if the owner takes I'll or goes on holiday the business has to close = loosing sales

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