Sole traders
Unincorporated businesses owned by and individual for profit.
The individual runs the business on their own and has sole responsibility for its success and failure.
Owner is also the manager.
| Advantages | Disadvantages |
| Owners retain all profits | Unlimited liability |
| Easy to form | Financing limitations |
| Owners have flexibility | Management deficiencies |
| | Lack of continuity |
| | |
Internal locus of control: they believe that the future is under their control
External locus of control: believe in faith or chances
Partnership
More managerial help, more finance but more conflict.
| Advantages | Disadvantages |
| Expended financial capacity | Difficult to solve |
| Easy to form | Interpersonal conflict |
| Management skills | Unlimited financial liability |
| | Lack of continuity |
| | |
No comments:
Post a Comment