Business Organisations

The type of Business Organisation

This is important in order to know how many people are involved in the business (eg sole trader one person).

Sole Trader
A sole trader is an individual who owns the business. Eg Hairdresser
Sole traders are risk takers and moneymakers.
The advantages of being a sole trader are that you can make decisions quickly as there is no one else that needs to be consulted, the owner gets to keep all rewards and profit, flexible working hours, they are their own boss, being a sole trader makes businesses easy to set up and business affairs can be kept private.
The disadvantages of being a sole trader are that there are limited sources of finance, the sole trader has unlimited liability (the responsibility to pay off every company debt, it may involve losing personal assets), No one to share workload, responsibility and risk often has limited knowledge and skills and there is no one to share ideas with.

Public Limited Company (plc)
A company whose s...