Parntership: A group between 2 – 20 people who run a business together. Advantages: More capital is available to invest. Owner has complete control. Partners can cover each other’s absence. Disadvantages: Unlimited liability, number of partners is limited, one partner could be unreliable.
Sole Trader: A business owned and operated by one person, although they can employ staff. Advantages: Can keep all profit. Work the hours he choose, few legal regulations. Disadvantages: Unlimited liability, business will stop working if bob is sick, cant grow.
Similarites?: They have unlimited liabilty, their business cannot grow, because there is only 2 workers, both have to pay tax (hmrc), both get to choose when they went to go on holiday.
Differences?: If you die in a partnership, the business will carry on. In a partnership there is a hgiher capital. In a sole trader you can have all the proft. In a sole trader there are no arguements.
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