Must be at least one general partner who is fully liable for all debts and obligations of the practice. The minimum membership is two partners and the maximum twenty. ![]() Disadvantages: unlimited liability for any loss or debts incurred: owner is responsible or liable cannot “Buy in bulk” and enjoy “Economies of scale” expansions limited by available capital division of labor is difficult continuity is a problem. Advantages: easy to set up with little capital and few legal formalities the owner controls the business – quick decision making personal contact with customers all profits belong to owner satisfaction, motivation, interest in “Working for yourself” business affairs are private – except far tax returns. Very common in retailing, service trades. ![]() There are several reasons for this trend including more opportunities to work for firms on consultancy basis and government support for self-employment. Over recent years, the number of sole traders has grown significantly. This is very common form of organization. ![]() A sole trader exists where a single person owns a business. Oldest, simplest, most common form of business easy to set up enterprise.
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