Business Organizations - Business Revision Notes
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- This is a company set up, run and owned by one person. Example: hairdresser.
- Easy to set up, no government permission needed. However must register name with the Registrar of Business Names.
- Gets to keep all the profits.
- Confidential- accounts do not have to be published.
- Full control, makes all the decisions.
- Unlimited liability- they are personally liable if the business goes bankrupt. Their personal possessions such as house, car are at risk if the business fails.
- It can be difficult to get loans as a result of this.
- Can be stressful and pressurising with little holidays.
- 2- 20 partners combine their resources and talents. Example: KPMG.
- The Deed of Partnership is a contract that sets out the issues that could arise in the partnership and how to resolve them such as how will profits be shared.
- There are few legal requirements when setting up a partnership.
- More capital is available due to more partners.
- Better decision making as partners can combine their areas of expertise when making dec...