Sole trader
Business owned
by one own
•
unlimited
it as
liability
*
•
Capital can come .
from investment and bank loans .
•
All Profits are kept
riskyVery due to unlimited
liability and the
difficulty of
•
raising money
÷¥¥¥¥÷i¥¥÷÷÷÷
advantages disadvantages TAE
agreement needed Difficult to raise
money
•
Partnership
•
Between 2 -
20 Partners
*
unlimited liability
capital can be via assets or cash injected from Partner
→
a
intended as capital rather than a loan . Capital also created
from Profits .
Profits to Partners which motivates them
go
•
risk of
disagreements and friction
among
Partners and
.
Management
advantages disadvantages
unlimited liability
Easy to set up
• •
share problems decisions
and Partners
may have
disagreements
• •
If Partner dies
good working relations or
goes bankrupt
• •
then Partnership is dissolved .
Business owned
by one own
•
unlimited
it as
liability
*
•
Capital can come .
from investment and bank loans .
•
All Profits are kept
riskyVery due to unlimited
liability and the
difficulty of
•
raising money
÷¥¥¥¥÷i¥¥÷÷÷÷
advantages disadvantages TAE
agreement needed Difficult to raise
money
•
Partnership
•
Between 2 -
20 Partners
*
unlimited liability
capital can be via assets or cash injected from Partner
→
a
intended as capital rather than a loan . Capital also created
from Profits .
Profits to Partners which motivates them
go
•
risk of
disagreements and friction
among
Partners and
.
Management
advantages disadvantages
unlimited liability
Easy to set up
• •
share problems decisions
and Partners
may have
disagreements
• •
If Partner dies
good working relations or
goes bankrupt
• •
then Partnership is dissolved .
