Business Ownership
starting up
anyone starting up a business needs to think about what type of business they will have in they eyes of the law (what form of business ownership they will have)
sole trader
partnership
company
non-for-profit
a sole trader is a form of business that is owned and managed by one person-
setting up sole trader is easy-you do not need to register with the government or fill in lots of forms, just start trading
sole traders are owned and managed by the same person, although they may employ other staff
advantages of being a sole trader
quick and easy to set up
you make all decisions yourself-don't need to consult lots of people making decision making faster and done the way you want
keep all profits yourself
disadvantages of being a sole trader
stressful making decisions yourself-amount of pressure
need to deal with; finances, marketing and running the business itself- some people aren't all good at these things
unlimited liability- you can lose everything you own
a lot of work to do- if you are ill or take a holiday the business can come to a standstill
if the sole trader dies the business ends
have to rely on own finances
the company is small and not have the power of a large business- this means higher costs and lower profits
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