A of a sole trader business are

February 19, 2019 February 25th, 2019 Business

A sole trader business is started by a single person that prepares the business plan and organises their own finance. There are no formalities required legally to set up business for a sole trader and it can be closed easily without any complicated legal or regulatory formalities. Anyone start their own business.
The main pros of a sole trader business are that it can be set up easily and quickly and all profits go to the sole proprietor. Any business can be decided upon without permission form others and the sole trader has independent control.
The main cons are limited capital resources, is the lack of variety of skills in the business as one person can’t be expert at everything. The sole proprietor is liable for all losses of business.
A Partnership is formed when two or more people set up a business and is easy to set up. A verbal agreement is enough to form but a written agreement is recommended.
Pros of a partnership are someone to share start-up problems with and it is easy to form. A partnership provides access to more skills and more effective decision making.
Partnership cons are that you have less autonomy and may not get your own way and differences in personal aims and objectives can cause issues. Decision making can also be slower due to the need to consult a partner.

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