Creating a Business- Original Writing Essay

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Creating a Business- Original Writing

For my GCSE business studies coursework I am going to create a business. The name of my business will be “paradise palace” as I am creating a beauty and tanning salon. There are two types of business organisations that I could create they are sole trader and partnership. The first type of business organisation tat I could choose is sole trader. This is a person who trades by himself/herself without the use of a company structure or partners and bears alone full responsibility for the actions of the business. Also a Sole proprietorship is a business, which legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by a
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The disadvantages of a sole trader are:

1. The sole trader has no one to share the responsibility of running the business with. A good hairdresser, for example, may not be very good at handling the accounts.

2. Sole traders often work long hours and find it difficult to take holidays, or time off if they are ill.

3. Developing the business is also limited by the amount of capital personally available.

4. There is also the risk of unlimited liability, where the sole trader can be forced to sell personal assets to cover any business debts.

The other business organisation that could choose would be a partnership. Partnerships are businesses owned by two or more people. A contract called a deed of partnership is normally drawn up. This states the type of partnership it is, how much capital each has contributed, and how profits and losses will be shared. Doctors, dentists and solicitors are typical examples of professionals who may go into partnership together. They can benefit from shared expertise, but like the sole trader, have unlimited liability. A partnership can also have a sleeping partner who invests in the business but has not dealings in the day to day running of the enterprise.

The advantages of a partnership are:

1. The main advantage of a partnership over a sole trader is shared responsibility.
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