Chapter 5 Flashcards
Disadvantages of sole trader
No limited liability
Sources of finances limited
Capital expansions restricted
No continue of buisness when owner dies
Advantages of partnership(2-20)
Responsibility divided
Share risks
More people to manage
Diffrent skills
Disadvantages of partnership (2-20)
Wrong actions of 1 influences all
No limited liability
More partners=less profit
Time consuming
Advantages of close cooperation (1-10)
Easy to establish
Limited liability
More capital
Easy to start
Disadvantages of close cooperation (1-10)
Capital limited
More rules
Conflict
Decision making take time
Advantages of cooperative
Tax is lower
Easy to start/end
High service for low cost
Work togheter
Disadvantages of cooperative
Disision making takes time
Conflict
Less additional capital
Participation required for success
Registration
Municipality
Social security commission
Ministry of trade and industry
Ministry of finance
Advantages of sole trader
Adapt easily
Own boss
Freedom
Keep all profit
