Wednesday, 9 March 2011

Sole Traders and Partnerships

Sole Trader

  • A business in which one person provides the permanent finance
  • They have full control of the bsiness
  • Keep all Profits
  • Unlimited liability
  • Common business type - hair dresses, builders. retail shopts etc

Partnership

  • A business formed by two or more people to carry on business together, with shared capital
  • Can have any number of partners between 1-30
  • Unlimited liability
  • Business debts and errors are felt by all partners
  • Commen Busisness - Law and Accounting firms
  • Most partnerships have an agreement detailing what each partners right, responsibilities and profits are

No comments:

Post a Comment