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Flashcards in Private Sector Deck (9)
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1

What is a sole trader

A business that is owned and managed by one person

2

What is a partnership

A business that’s owned by 2-20 people

3

What is a limited company

A business that is owned by private shareholders. This means that people are invited to become part of the company

4

What are 2 advantages of a sole trader

-They don’t need to consult other people about decisions
-The owner keeps all the profits

5

What are 2 disadvantages of a sole trader

-Unlimited liability
-Long working hours with few holidays

6

What are 2 advantages of a partnership

-More money can be invested in the business
-Workload is shared

7

What are 2 disadvantages of a partnership

-Unlimited liability
-Profits have to be shared amongst the partners

8

What are 2 advantages of a limited company

-Limited liability
-Lots more finance can be raised from the shareholders

9

What are 2 disadvantages of a limited company

-Profit is shared between the shareholders
-Shares can’t be sold to the public