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Advantages and disadvantages - Coggle Diagram
Advantages and disadvantages
Sole Trader
Advantages
You keep all the profits
Start up costs are low
Maximum privacy
Easy to establish and operate
You are the boss
Disadvantages
You have the entire responsibility
Retaining high quality employees can be difficult
Not as many opportunities to have a break
Heavy workload
Example: Plumbers
Partnerships
Advantages
More equity available to finance the business
Different partners can bring different skills
Workload is shared
Disadvantages
Unlimited liablility
Profit is shared between the partners
Decisions may not always be agreed between partners
Example: Law firm
LTD
Advantages
Less legal requirements
Disadvantages