Category: Business Studies

More capital available Partners are able to arrange larger amounts of capital than the sole trader business. Partnership has more capital because the partners invest their money into the business. Other than that the banks tend to give loan facility to the partnership on relaxed terms, whereas the sole trader has to provide security and…

Profit is not shared Sole trader does not have to share the profit of the business. The sole trader manages and runs the business on his own. The sole trade is the only owner of the business. The sole trader may employ some workers, and pay them salaries but these people do not share the…

Losses are shared If the business suffers losses then the partners have to share the losses equally. The partners have to share the loss even if the loss was due to the decision made by one partner. Partners are held responsible for the acts of each other. If the business suffers a loss of $10,000…

Quick decision making The sole trader does not have to listen to advice of other people. The sole trader has the liberty to make his or her own decisions. As the decision making is often done without consulting other people, the process of decision making is quick. The sole trader makes the decisions quickly which…

Self employment It is getting increasingly difficult to find a job in today’s economy. The sole trader not only contributes to the economy but he also solves the problem of employment. The sole trader lessens the burden of the government to provide a job as the sole trader works for his own business and earns…

Start business with limited capital The sole trader can start the business with limited capital. The sole trader normally starts a business which is a small business, so the sole trader does not require high amounts of capital in order to start the business. The sole trader has the option to either borrow the money…

Sole trader is a person who manages and operates a business by himself. People with limited capital start this kind of business. The Sole trader is the most common and popular form of business. The sole trader has many advantages and disadvantages. Most of the businessmen claim that the advantages of operating as a sole…

Who are external stakeholders? External stakeholders are the people who are not part of the company but they are affected by the activities of the business. For example a bank is not part of the business, but it is considered to be an external stakeholder. The bank will not be paid promptly if the business…

What is Public sector? The public sector is controlled by the government. All the organizations are answerable to the government. The main aim of the public sector is to work for the welfare of the people.