Ownerships Flashcards
Sole traders
A form of business organisation when only one person runs it
Advantages of sole traders
Be your own boss, all the control
Easy to set up and not costly to set up due to there being less paper work
You keep all the profits
Disadvantages of sole trader
Unlimited liability
Hard to raise finance
Risky
More responsibilities
Partnership
When two or more people agree to own and run a business together
Advantages of partnership
More support
Sharing ideas
Shared experience
More capital can be put in the business
Disadvantages of partnerships
Causes conflict
Sharing profit
Unlimited liability
Limited liability
Means the shareholders only lose the money that they invested
Unlimited liability
When the owners of the business are responsible too all the debts owed this means that loss of personal possession is possible
Joint venture
When two or more businesses agree to start a new project together sharing capital, the risks and the profits
