Accounting - Small Business

VCE Accounting Unit 1
Starting a small business
By Wendy Zhou

1. Define a small business.
A small business is a usually owned by one or two owner, these owner manage and controls the business. The business usually consists of 20 or less employees.

2. What is the difference between a sole trader and a partnership? What are two advantages and two disadvantages of a sole trader and a partnership?
Sole trader is a business owned by the one owner whereas a partnership is where two or more owners own the business and the share is spread among the owners. The advantages of a partnership includes a greater amount of money being used while can help them to increase the quality of services and goods. The flexibility of having one owner and therefore it gives the other owners the chance to take time off, so that he or she won’t have to worry about his or her business as there are other owner helping to look after the business, also the workload is spread.
Some disadvantag...