The Business Environment Coursework. Describe the type of business, purpose and ownership of 2 contrasting types of businesses.

The first 200 words of this essay...

Task 1 Describe the type of business, purpose and ownership of 2 contrasting types of businesses.

Sole Trader

A sole trader is a business owned by 1 person. It does not have limited liability meaning that if it fails and creates debts the owner is personally responsible for this.

Sole trader's usually have to work long hours and learn about all the aspects of business as many start up businesses cannot afford to hire people to take on other tasks.

The owner is responsible for everything that goes on in the business and has to do a lot of work. The owner also receives all the profit and is able to make decisions on their own.

The owner has full control over the business.

Hair dressers, small independent shops and book keepers are usually sole traders.

Partnership

A partnership is a lot like a sole trader only there are more than 1 owner.

This usually means the work and responsibility is shared and so are the profits.

Good examples of partnerships are dentists, accountants and lawyers.