Partnerships and sole traders IGCSE

Using this case study as an example, explain what is meant by a partnership

How does this case study illustrate ONE of the advantages of being in a partnership?

Are Sole Traders large or small businesses?

• Large
• Small

How many people own a sole trader business?

• 3
• 2
• 1
• 20

An advantage of being a sole trader is

• you can take time off whenever you want
• you can grow your business really easily
• you can receive large amounts of finance from loans
• you receive all the firm's profit for yourself

A disadvantage of being a sole trader is

• a heavy workload creates stress and pressure
• a second opinion on important decisions is always available
• arguments and disagreements can harm the progress of the business
• the owner gets a smaller share of the profits

A partnership has between 2 and 20

• employees
• shareholders
• owners
• customers

A partnership arrangement is commonly found in

• the fire service
• dentists' surgeries
• local councils
• supermarkets

Which of the following is NOT included in a Deed of Partnership?

• How the profit is to be split between the partners
• The name of the partnership's accountant
• The responsibilities of each partner
• The date the partnership started up

Unlimited liability means

• the business is closed down because of too much debt

• the owners' personal possessions can be used to cover the firm's debts

• the bank will refuse to give loans to the business

• the business will struggle to attract investors