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ID number:106177
 
Evaluation:
Published: 08.09.2011.
Language: English
Level: College/University
Literature: n/a
References: Not used
Extract

On the other hand, you must legislate for many disadvantages too. It can be difficult to raise finance, because they are small, banks will not lend them large sums and they will not be able to use any other form of long-term finance unless they change their ownership status. A sole trader is liable for any debts that the business incurs. This means that any money that the owner has put into the business could be lost, but importantly, if the business continues to incur further costs then the owner has to pay these as well. In some cases they may have sell some of their own possessions to pay creditors.…

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