Sole Traders and Partnerships

• Advantages of being a sole trader: Freedom in decision making; easy to set up; can suit the business to their lifestyle; no profit is shared.
• Disadvantages of being a sole trader: Unlimited liability; less ideas; potential lack of necessary skills in some aspects; extremely long hours.
• A partnership is a business owned by 2-20 people.
• Advantages of being in a partnership: Easy to set up; workload shared; less stress; variety of skills for each department; shorter work hours
• Disadvantages of being in a partnership: Unlimited liability; profits are shared; shared control; if one partner dies or goes bankrupt the partnership must end.