Advantages and Disadvantages of Business Entities (1.2) | Quizlet

Sole trader pros

Full control

Keeps all profits

Close to customers

Sole trader cons

Unlimited liability

Lack of continuity

No specialization

Partnership pro

Share expenses/responsibility

More capital available

Continuity

Partnership con

Disagreements

Unlimited liability

Dishonesty

Privately held pro

Limited liability

Control remains with owners

Specialization

Privately held con

Expensive setup

Cant sell shares

Accounts have to be published in full with the companies registrar = less privacy

Publicly held pro

Limited liability

Easier to raise capital

Continuity

Publicly held con

Takeovers

annual accounts have to be published in full

bad management

PPP pro

Higher quality services

Private sector expertise

PPP con

Expensive

Takes long and complex

Cooperative pro

Easy to form (no legal formalities)

Limited liability

Continuity

Cooperative con

bad management

Disagreements

Difficulty raising finance

NGO pro

Flexible

Attract experts/motivated staff

NGO con

bad management

Disagrements

Difficulty raising finance

Charities pro

Tax benefits

Trust

Charities con

Cannot benefit people you have relationship with

Political activities not allowed

Lots of paperwork

Microfinancer pro

Supports low-income families

ecourages people to start a business

Microfinancer con

Risky lending

Small loan amounts only

teh amount of money that needs to be returned is more