CUUDLE
Capital must be raised either from savings or loan
U- has Unlimited Liability= liable for all debts. If end up bankrupt, assets may be sold to pay creditors (people you owe money to) in order to pay off debts. A lot of risk is involved
Unable to run if owner is ill or on holiday (unless there are employees)
D- If the owner dies the business closes= lack of continuaty
L- banks may be less eager to lend money
E- May be difficult to enjoy economies of scale eg may not be able to buy in bulk and get the same discounts as larger businesses
Comments
No comments have yet been made