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Advantages
- Easy and cheap to set up
- Few legal formalities
- Able to respond quickly to changes in circumstances
- Owner takes all the profit therefore it is good motivation
- Independence
- More privacy than other legal structures as financial details don't have to be published
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Disadvantages
- Unlimited liability
- Limited collateral to support applications for loans
- Limited capital for investment and expansion
- Difficulties when the owner wishes to go on holiday or is ill
- Inability to specialize as the owners needs to be a 'jack of all trades'
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