5737057
Description
Mind Map by Jaiden Butch, updated more than 1 year ago
|
Created by Jaiden Butch
over 8 years ago
|
|
The Advantages and Disadvantages of
Sole traders and Partnerships
- Sole Traders
- Advantages
- You make your own
decisions and don't have
other people you need to
go to to run the
business the way you
want, this means that
you have a business that
you enjoy and made
100% you.
- There would be
no people that
you didn't like to
work with if that
was another
owner of if that
was a employee
none of that
would happen if
you were a sole
trader.
- Decision making would
be quick and effective
and could make the
business run more
effectively and
efficiently.
- You make your own
decisions and don't have
other people you need to
go to to run the
business the way you
want, this means that
you have a business that
you enjoy and made
100% you.
- Disadvantages
- You would have unlimited liability
this means you would be taking a
massive risk and might lose
everything you own if your
business went into debt.
- If you were the only owner it would be
difficult to get time off and means you
would have to work all the time. This
would make things stressfull and you
might not be able to handle it. You
could get someone to run the business
why you were away, however this
would not be official and would be hard
to do.
- Another thing would be if
there was a bad decision
that was made there
would be no one to fall
back on you would be the
one to blame and it might
affect your personal
relationship.
- You would have unlimited liability
this means you would be taking a
massive risk and might lose
everything you own if your
business went into debt.
- Advantages
- Partnerships
- Advantages
- You would have someone to fall
back on this would mean you
could look to the other owner
and seek their advice and this
might make things more
effective.
- Your partners would most likely be
people you trusted and this, hopefully,
would mean that you could trust them
with your ideas and if you needed to
leave or have a holiday you could trust
them to keep the business up and
running.
- If something went
wrong you could fall
back on them, it
would make them
better to handle and
you wouldn't have
much recoil per say.
- Another thing would be that you would have more starting
capitol then a sole trader as you would have multiple
starting incomes and this would mean you could get better,
contracts, equipment, certificates etc.
- You would have someone to fall
back on this would mean you
could look to the other owner
and seek their advice and this
might make things more
effective.
- Disadvantages
- The disadvantages of
being in a partnership
is that if you don't like
one of the partners
then it could affect the
business quite a lot
and this could reduce
profit, increase debt
and other damaging the
business.
- If you have a lot
of partners then
your ideas might
be 'swept under
the carpet' or not
considered as
much as you
would like them to
be.
- Decision making could be
slow and you would have to
consult all the partners
before the decision will
actually go through, this could
be difficult if one of the
partners lived far away or
could not be available all the
time. This would affect the
business and it's employees.
- Finally the cost to run a
partnership would be
more then a sole trader
and might make things
difficult or ineffective.
- The disadvantages of
being in a partnership
is that if you don't like
one of the partners
then it could affect the
business quite a lot
and this could reduce
profit, increase debt
and other damaging the
business.
- Advantages
Want to create your own Mind Maps for free with GoConqr? Learn more.