types of business ownership

sole trader advantages

• males all decisions

• quick and easy to set up

• keep all profits

• financial information is kept private

sole trader disadvantages

• unlimited liability

• harder to raise money or grow finance

• a lot of pressure on one person

• no one to cover when off ill or taking time off

partnership advantages

• owners may have wider expertise and can share ideas

• share risk

• easier to raise finance to establish/grow a business

partnership disadvantages

• decisions made by one partner can affect them all

• no longer exists if one person leaves

• profits are shared

• partners may have disagreements

private limited advantages

• limited liability

• customers may trust it more than others

• continues to trade even if shareholders change

• easier to raise finance to establish/grow a business

private limited disadvantages

• more complex to set up

• shareholders may disagree

• financial info is published/can be accessed by others

• more info must be reported to the goverment