Sole Trader – Advantages & Disadvantages
What is unlimited liability?
Owner pays all debts.
Two or more owners.
What is a partnership?
Owned by shareholders.
What is an LTD?
Franchise – Advantages & Disadvantages
What is a franchise?
Something the business owes.
What is a liability?
Owned by one person.
What is a sole trader?
All partners responsible for debts.
What is unlimited liability?
Owners only lose what they invest.
What is limited liability?
Often has limited liability.
What type of liability might a franchisee have?
Something the business owns.
What is an asset?
Keeps all profit.
What is an advantage of a sole trader?
Shared skills and workload.
What is an advantage of a partnership?
Shares not sold to public.
What is a feature of an LTD?
Brand already known.
What is an advantage of a franchise?
A business van.
What is an asset?
Full control of decisions.
Does a sole trader have full control over their business?
Profits must be shared.
What is a drawback of a partnership?
Owners may get dividends.
What do shareholders receive?
Must pay fees.
What is a drawback of a franchise?
A bank loan.
What is a liability?
Takes all the risk.
What is a drawback of being a sole trader?
One partner’s mistake affects all.
What is unlimited liability in a partnership?
Lower financial risk.
Why choose an LTD?
Franchisor gives support.
What does the franchisor provide?
Controlling debts helps the business.
Why manage liabilities?