What are 2 advantages of a company?
- More credibility in the marketplace.
- Easier to attract funds and investment (investors can become shareholders).
What are 2 advantages of a partnership?
- Expertise is shared.
- Partners can share the risk and responsibility of the business.
What are 2 advantages of a sole trader?
- Easy to start.
- All profits are property of the owner.
What are 2 disadvantages of a company?
- Directors need to clearly understand their responsibilities.
- Control is divided or shared.
What are 2 disadvantages of a partnership?
- Putting personal assets at risk.
- If a partner dies or retires the partnership is at an end.
What are 2 disadvantages of a sole trader?
- Owners have unlimited liability for all business taxes and debts, putting their personal owns at risk.
- Harder to attract loans and investment.
- The business only lasts the lifetime of the sole trader.
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 can not be used to pay business debts.
