Business structures Flashcards
What are 2 advantages of a Sole Trader?
- Easy to start and run.2. No registration or formal documentation is required.
What are 2 disadvantages of a Sole Trader?
- Owners have unlimited liability for all business taxes and debts, putting personal assets at risk.2. Sole Traders can lack credibility in the marketplace.
What are 2 advantages of a Partnership?
- No registration is required to start a partnership. 2. Expertise is shared.
What are 2 disadvantages of a Partnership?
- Partners may be liable for debts incurred by other partners.2. Control is shared.
What are 2 advantages of a Company?
- More credibility in the marketplace.2. Easier to attract funds and investments.
What are 2 disadvantages of a Company?
- Directors need to clearly understand their responsibilities. 2. Limited liability advantages are often eroded in practice by the need to provide personal guarantees to lenders or creditors.
What is the definition of unlimited liability?
If the business fails, the personal assets of the owner can be used to pay business debts.
What is the definition of limited liability?
If the business fails the personal assets of the owner cannot be used to pay business debts.
What are 2 advantages of a Sole Trader?
- Easy to start and run.2. No registration or formal documentation is required.
What are 2 disadvantages of a Sole Trader?
- Owners have unlimited liability for all business taxes and debts, putting personal assets at risk.2. Sole Traders can lack credibility in the marketplace.
What are 2 advantages of a Partnership?
- No registration is required to start a partnership. 2. Expertise is shared.
What are 2 disadvantages of a Partnership?
- Partners may be liable for debts incurred by other partners.2. Control is shared.
What are 2 advantages of a Company?
- More credibility in the marketplace.2. Easier to attract funds and investments.
What are 2 disadvantages of a Company?
- Directors need to clearly understand their responsibilities. 2. Limited liability advantages are often eroded in practice by the need to provide personal guarantees to lenders or creditors.
What is the definition of unlimited liability?
If the business fails, the personal assets of the owner can be used to pay business debts.
What is the definition of limited liability?
If the business fails the personal assets of the owner cannot be used to pay business debts.
What are 2 advantages of a Sole Trader?
- Easy to start and run.2. No registration or formal documentation is required.
What are 2 disadvantages of a Sole Trader?
- Owners have unlimited liability for all business taxes and debts, putting personal assets at risk.2. Sole Traders can lack credibility in the marketplace.
What are 2 advantages of a Partnership?
- No registration is required to start a partnership. 2. Expertise is shared.
What are 2 disadvantages of a Partnership?
- Partners may be liable for debts incurred by other partners.2. Control is shared.
What are 2 advantages of a Company?
- More credibility in the marketplace.2. Easier to attract funds and investments.
What are 2 disadvantages of a Company?
- Directors need to clearly understand their responsibilities. 2. Limited liability advantages are often eroded in practice by the need to provide personal guarantees to lenders or creditors.
What is the definition of unlimited liability?
If the business fails, the personal assets of the owner can be used to pay business debts.
What is the definition of limited liability?
If the business fails the personal assets of the owner cannot be used to pay business debts.
