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Question 1.A.5: Insert in the following table one advantage and one disadvan...

Insert in the following table one advantage and one disadvantage of operating a business as (a) a sole trader; (b) a partnership; and (c) as a limited liability company.

Type of entity Advantage Disadvantage
(a) Sole trader
(b) Partnership
(c) Limited liability company
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Type of entity Advantage Disadvantage
(a) Sole trader The owner has total control of the business It may be difficult to obtain sufficient finance
(b) Partnership The management of the business is shared If the business is unsuccessful the partners may go bankrupt
(c) Limited liability company The liability of the owners is restricted Certain financial information about the company has to be disclosed publicly

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