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An example of a sole trader would be an Ice-Cream man, or a florist. These two examples are sole traders because they are self employed and do not need to hire many employee's as they would not get that many customers, they also do not have any share holders which means total control. In a sole trader company, it would involve just the one owner, and he would work for himself, therefore gaining all the profit. A sole trader does not have a large market as it is only a small firm and can't afford to keep up with all the latest marketing ways.
Partnership ? Advantages
- Less expensive
- Shared risk
- More support
- Less pressure
- Debt shared equally between all owners (advantage if you put more money into the company)
Partnership ? Disadvantages
- Less power
- Shared ownership
- Debt shared equally (disadvantage if you own less)
- Benefits shared
- Less profit
An example of a partnership could be a dentist, or an engineer...
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