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Advantages and Disadvantages (Partnership (. (You'll have a greater…
Advantages and Disadvantages
Sole Trader
Advantages
Disadvantages
Tax planning limitations
No to share ideas to
Poor work life business
Lack of continuity
Example-Hairdressers
Unlimited liability
Be your own boss
Low start up costs
Keep all profits
Partnership
.
You'll have a greater borrow capacity
Example-Docters
Your business is easy to setup and is low cost
Limited external regulation
Two heads is better than one
Advantages
Each partner is liable for actions by other partners
The liability of the partners for the debts of the business is unlimited
If a partner leaves/joins you will have to value all the partnership assets
Risk of disagreement
Disadvantages
LTD
.
.
Required to pay register fees
Example-Google
Company name is subject to certain restrictions
Must be officially incorporated at house
Not suitable for undischarged bankrupts
Disadvantages
Improved reputation
Download the free guide
Protection
Tax and national insurance efficiency
Adavntages
PLC
Better access to capital
.
Decisions
Example-Marks and Spencers
Greedy shareholders
Takeovers
High costs
Disadvantages
Easily make acquisitions
Liquidity
Value of shares
Advantages
Public Sector
.
Provides service that could be unprofitable
Can "crowd out" private films
Example-Law Enforcement
Changes in funding and spending
Lack of innovation
Often considered to be
Disadvantages
Provides goods and services to those that cant afford them
Little competition
Provides some of its service to all customers
Advantages