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sole traders and partneships - Coggle Diagram
sole traders and partneships
Sole traders
A business owned and run by a single individual
Advantages
Owner has complete control
Owner keeps all profits
Greater privacy and fewer legalities than companies
Closer relationships with employees and customers.
Disadvantages
unlimited liability
Difficult to raise capital
long working hours
Owner needs to be multi skilled
Continuity issues if there is death
Partnerships
A business owned and controlled by two or more individuals.
Advantages
shared decisions
Easy to set up
requires little capital
more ideas
shorter working hours.
shared amongst partners
Disadvantages
difficult to raise capital
unlimited liability
losses are shared
conflict of interest
profita are shared
Continuity issues
More competition