The owner makes all the decisions Unlimited liability The owner keeps all the profits Have to manage the business long – working hours; few holidays; problems The business can run smoothly as if ill, etc. there is no-one to argue with over decisions which need to be made No-one to share decisions with or talk over ideas Finance Normally a sole trader uses personal savings to start in business. He may also borrow money from friends or family or the bank or get a business start-up loan. Aims and objectives To survive, maximise profits, improve the owner’s personal status, to give the community a good image of the firm. Partnerships Two or more people (but less than 20) to form a business. The partners may have a partnership agreement legal document setting out how profits are to – be shared, etc. Many professional people form partnerships, usually because they have their own areas of expertise e.g. Lawyers, doctors, vets, accountants, etc. ADVANTAGES DISADVANTAGES Partners share the running of the Unlimited liability (except for sleeping business partners) Partners can specialise in certain areas Share all profits/losses of the business May have disagreements over the It is a way of bringing in new to running of the business the business
The owner makes all the decisions The owner keeps all the profits The business can run smoothly as there is no-one to argue with over decisions which need to be made Unlimited liability Have to manage the business – long working hours; few holidays; problems if ill, etc. No-one to share decisions with or talk over ideas Finance Normally a sole trader uses personal savings to start in business. He may also borrow money from friends or family or the bank or get a business start-up loan. Aims and objectives To survive, maximise profits, improve the owner’s personal status, to give the community a good image of the firm. Partnerships Two or more people (but less than 20) to form a business. The partners may have a partnership agreement – legal document setting out how profits are to be shared, etc. Many professional people form partnerships, usually because they have their own areas of expertise e.g. Lawyers, doctors, vets, accountants, etc. ADVANTAGES Partners share the running of the business Partners can specialise in certain areas of the business It is a way of bringing in new to the business DISADVANTAGES Unlimited liability (except for sleeping partners) Share all profits/losses May have disagreements over the running of the business