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Sole Traders VS Partnerships (Sole Traders (Advantages (Control over…
Sole Traders VS Partnerships
Sole Traders
Advantages
Control over business
Only 1 person in charge of desiccation
Keep all profit
1 person keeps all the profit
Easy to set up
Sole traders are often very small operations and thus involve less paperwork
Disadvantages
Long working hours
Sole traders dont get paid when they are not working resulting in long working hours
No holiday
If the sole trader stops working, he does not get paid
Difficult to raise finance
Small business find it hard to raise large amount of money
Partnerships
Advantages
More expertise
More people in the group can mean more experienced people
Less Financial Risk
Liability is shared among all partners
More Continuity
If a partner leaves the business can still continue
More Capital
More partners to invest in
Disadvantages
Lack of capital
Partnerships still find it difficult to raise large amount of capital
Sharing the profit
Profit is shared between partners
Conflict of interest
Partners can disagree of business decisions