Senior 3 -Paper 2 style section 1 solved

Look at Delfina`s blog

http://delfinamiyuranga.cumbresblogs.com/2015/04/29/exam-practise/

Disadvantages of sole trader

-if derek wants to share his ideas with someone else he won`t be able to do it.

-it has unlimited liabilities

-sources of finance will be limited, few

Advantages of private limited company

-more legal regulations and paperwork compared with partnership but less than for public limited companies

-continuity: the shareholders have the possibility to sell shares whenever they want regardless the creation of new paper worl. The only condition is that the other shareholders will have to agree.

-limited liabilities: in case derek`s company fails, it will not have to pay the company`s debts with his own assets just with the ones of the company

Disadvantages of private limited company

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