Assignment 1
Identify the purpose of different types of organisation giving examples
Sole trader
A sole trader is someone some who starts up their own business, as a sole trader, your business is owned entirely by you, its grown by you ultimately succeed or fails by you. Furthermore this means that you are entitled to all the profit the company makes.
If you have a llook through the Yellow Pages or a local free business listing posted through your letterbox and you will see lots of examples of people operating as a sole trader in your area. Many traders in the service sector (e.g. hairdressers, gardeners, plumbers and electricians) use the sole trader option, as do people who run part-time or seasonal businesses. http://www.tutor2u.net/blog/index.php/business-studies/comments/qa-what-is-a-sole-trader Becoming a sole trader could potentially take a lot of your time and money, here’s a list of advantages and disadvantage
Advantage
Control - Sole traders maintain full control of their business. Running it how they please without the interference of others.
Profit retention – Sole traders retain all the profits of their business.
Private data – Information about sole traders is kept private, unlike that of limited companies which is necessarily made public after registration with Companies House.
Specialist – Often a small business, sole traders can offer a more personal service with local roots and ties. This can be more appealing to potential customers in the local community.
Personal – Because there is no need to confer with other decision makers, sole traders can make decisions quickly and act on them swiftly, providing for the needs of their customers. - See more at:
Disadvantage
Liability – sole traders are not seen as a separate entity by the law. Therefore, they are subject to unlimited liability. This means if the business gets into debt, the business owner is liable. In the worst case, this may mean a person risks their home, personal
Sole trader
A sole trader is someone some who starts up their own business, as a sole trader, your business is owned entirely by you, its grown by you ultimately succeed or fails by you. Furthermore this means that you are entitled to all the profit the company makes.
If you have a llook through the Yellow Pages or a local free business listing posted through your letterbox and you will see lots of examples of people operating as a sole trader in your area. Many traders in the service sector (e.g. hairdressers, gardeners, plumbers and electricians) use the sole trader option, as do people who run part-time or seasonal businesses. http://www.tutor2u.net/blog/index.php/business-studies/comments/qa-what-is-a-sole-trader Becoming a sole trader could potentially take a lot of your time and money, here’s a list of advantages and disadvantage
Advantage
Control - Sole traders maintain full control of their business. Running it how they please without the interference of others.
Profit retention – Sole traders retain all the profits of their business.
Private data – Information about sole traders is kept private, unlike that of limited companies which is necessarily made public after registration with Companies House.
Specialist – Often a small business, sole traders can offer a more personal service with local roots and ties. This can be more appealing to potential customers in the local community.
Personal – Because there is no need to confer with other decision makers, sole traders can make decisions quickly and act on them swiftly, providing for the needs of their customers. - See more at:
Disadvantage
Liability – sole traders are not seen as a separate entity by the law. Therefore, they are subject to unlimited liability. This means if the business gets into debt, the business owner is liable. In the worst case, this may mean a person risks their home, personal