forms of businesses Flashcards
1
Q
what is a sole trader
A
businesses run by individual
self employed
has full repsonility of financial control
2
Q
unlimited liability
A
havign full reposnbility for the debts of the business
risky as if business goes wrong, owner is rrepsonbsile for paying back all money lost , even if means they ahave to sell their own perosnall assets
3
Q
adv of sole trader
A
freddom-sole trader is his/her own boss and has control over all decisions
profit-sole trader entitiled to all profit made by business
4
Q
dis of sole trader
A
risk-no one to share overall repsonsbility
time-may have to work long hourse
unlimited liability-respoenbeile for all debts of the business
5
Q
partnership
A
minimum amoubt if owners is two people-usually betweeen 2 and 20 people
