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There is not one type of business organisation that is most suitable regardless of the circumstances. Nor is one type of business organisation likely to remain the most appropriate forever, because the circumstances in which a particular business operates will change over time.
Sole traders: A sole trader can set up in business with a minimum of formality. A sole trader is the owner of the business, and is entitled to all the profits. But a sole trader also assumes all the risks of the business, and is personally liable for the business debts. If a sole trader needs capital for their business, they will have to provide it themselves.
Partnerships: By contrast, operating a business as a partnership is likely to be more complicated simply because more than one person is involved. But it may be an advantage to have two or more persons contributing to the starting up and running of the business, and sharing the liabilities. Partners can also share the practical tasks of running the business, and give each other time off.
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