1.3 Business ownership

• 3 advantages of a sole trader

  -low start up cost

  -all profits go to you

  -you make all the decisions for the business
• 3 disadvantages of a soletrader -unlimited liability

  -long working hours

  -high level of responsibility
• 3 advantages of a partnership

  -they are usually quick and easy to set up

  -limited liability

  -shared decision making
• 3 disadvantages of a partnership

  • shared profits
  • they can involve long work hours
  • conflict amongst owners
• 3 advantages of a private limited company (LTD)

  • shares in the business can be sold to raise money
  • the owners have limited liability
  • it gives individuals the opportunity to be their own boss
• 3 disadvantages to a private limited company (LTD)

  • there is often more paperwork
  • it can be very time consuming to set up
  • the business may require outside professional help to manage its finances