Sole trader and partnerships

• What type of business ownership involves two to twenty people?

  Partnerships
• What is a requirement for forming a partnership?

  You must sign a binding agreement
• What is a crucial decision for start-up businesses?

  Choosing the right type of business ownership
• Why do many start-up businesses choose sole trader ownership?

  It is the simplest form of business ownership
• What does unlimited liability mean for business owners?

  They must pay all business debts personally
• How many people can own a partnership?

  Between 2 and 20 people
• What is a characteristic of sole trader businesses?

  They are relatively easy to set up
• What are the advantages and disadvantages of being a sole trader?

  Advantages:

  • Full control over decisions
  • Simple to set up
  • Minimal regulatory requirements

  
  

  Disadvantages:

  • Unlimited liability
  • Difficulty in raising capital
  • Heavy workload
• What are the key features of a partnership?

  • Owned by 2 to 20 people
  • Shared responsibility for debts
  • Requires a binding agreement
• What is the concept of unlimited liability in business?

  • Owners are personally responsible for all debts
  • Can lead to financial risk for personal assets
• What is another type of business structure besides sole trader?

  Partnerships
• How many people typically own a partnership?

  Between 2 and 20 people
• What is the definition of a sole trader?

  One person owns the company and makes decisions
• What is a key feature of a partnership regarding debt?

  The debt is split among all partners
• What is a requirement for forming a partnership?

  Sign a binding agreement with partners
• What must partners do in a partnership?

  Sign a binding agreement
• What does unlimited liability mean for business owners?

  They must pay all business debts
• What is a disadvantage of unlimited liability?

  Personal assets can be at risk
• What are the advantages and disadvantages of a partnership?

  Advantages:

  • Shared responsibility
  • Combined skills and resources
  • Easier to raise capital

  
  

  Disadvantages:

  • Unlimited liability
  • Potential for conflicts
  • Binding agreements required
• What is a crucial decision for start-up businesses?

  Choosing the right type of business ownership
• What type of business ownership do many start-up businesses choose?

  Sole trader
• Why is sole trader ownership considered simple?

  It is relatively easy to set up
• What is a common advantage of being a sole trader?

  Full control over business decisions
• What are the advantages and disadvantages of being a sole trader?

  Advantages:

  • Full control over decisions
  • Simple to set up
  • Direct access to profits

  
  

  Disadvantages:

  • Unlimited liability
  • Limited capital for growth
  • Sole responsibility for debts
• Why is choosing the right type of business ownership important for start-up businesses?

  It affects operations and legal responsibilities
• What are the advantages and disadvantages of being a sole trader?

  Advantages:

  • Full control over decisions
  • Simple to set up
  • All profits go to owner

  
  

  Disadvantages:

  • Unlimited liability
  • Harder to raise funds
  • Heavy workload
• What are the advantages and disadvantages of a partnership?

  Advantages:

  • Shared responsibility
  • More capital available
  • Diverse skills and expertise

  
  

  Disadvantages:

  • Unlimited liability
  • Potential for conflicts
  • Shared profits
• What is the simplest form of business ownership?

  Sole trader
• How many people typically own a partnership?

  Between 2 and 20 people
• What must partners do in a partnership?

  Sign a binding agreement
• What is unlimited liability?

  Partners pay all business debts
• What happens if a business with unlimited liability fails?

  Owners must pay all debts personally