Topic 1 Quiz 1 Sole Trader and Partnership

Give two advantages of being a Sole Trader

• All profits are kept

• Lack of continuity – if sick or die!

• Financial privacy

• Conflict between partners

Give two disadvantages of being a Sole Trader

• Unlimited liability

• Financial privacy

• Better control

• Long hours

Give two advantages of trading as a Partnership

• Unlimited liability

• Shared work load

• Raising capital easier

• Lack of expertise

Give two disadvantages of trading as a Partnership

• Financial privacy

• Lack of continuity

• Low start-up costs

• Loss of autonomy

Give two advantages of trading as a Sole Trader

• Unlimited liability

• Lack of capital

• Better control

• Financial privacy

Give two disadvantages of being a Sole Trader

• Shared work load

• Lack of expertise

• Lack of continuity

• Better control

Give two advantages of trading as a Partnership

• Financial privacy

• Lack of capital

• Low start-up costs

• Lack of expertise

Give two disadvantages of trading as a Partnership

• Lack of capital

• Unlimited liability

• All profits are kept

• Raising capital easier

Give two disadvantages of being a Sole Trader

• Unlimited liability

• Low start up costs

• All profits are kept

• Lack of capital

Give two advantages of trading as a Partnership

• Lack of expertise

• Specialisation

• Raising capital easier

• Conflict between partners