Company Law Question and Answer 100% Correct

Company Law Question and Answer 100% Correct Sole Trader Advantages - ⟨ No filing requirements; fees or professional advice needed for set up ⟨ One person, thus a complex organizational structure is not needed. Sole Trader Disadvantages - ⟨ Not a particularly useful business form for raising capital (finding investors) -money is usually from bank loans or savings ⟨ Unlimited liability: if business fails creditors can come after your personal assets, ie., no difference from the trader and the business. Partnership Advantages - ⟨ No legal filing requirements, only 2 or more members needed ⟨ Allows the pooling of resources / capital, being jointly liable for debts ⟨ Flexibility: If you're aware of the problems the Partnership Act can cause you can draft an agreement to vary these terms with a reflection of your