A sole trader and partnership

BAM 101  LECTURE                        SATURDAY 2109/2019   
                             SOLE TRADER
A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity. A sole trader does not necessarily work 'alone'—it is possible for the sole trader to employ other people.

The sole trader receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's. It is a "sole" proprietorship in contrast with partnerships (which have at least two owners).
A sole proprietor may use a trade name or business name other than their or its legal name. They may have to legally trademark their business name if it differs from their own legal name, the process varying depending upon country of residence.
Features of Sole Proprietorship
Single Ownership. A sole trading concern is owned by one individual. ...
Personal Organization or Common Identity. A sole tradership concern has no separate legal entity independent of the owner. ...
Capital. ...
Unlimited Liability. ...
One Man Control. ...
Profits and Losses. ...
No Special Legislation.
Advantages of sole trading include that:
you're the boss.
you keep all the profits.
start-up costs are low.
you have maximum privacy.
establishing and operating your business is simple.
it's easy to change your legal structure later if circumstances change.
you can easily wind up your business.
Disadvantages of sole trading include that:
you have unlimited liability for debts as there's no legal distinction between private and business assets.
your capacity to raise capital is limited.
all the responsibility for making day-to-day business decisions is yours.
retaining high-calibre employees can be difficult.
PARTNERSHIP
A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in a partnership business, all partners share liabilities and profits equally, while in others, partners have limited liability.
            FEATURES
1.Two or More Persons: ...
2. Contract or Agreement: ...
3. Lawful Business: ...
4. Sharing of Profits and Losses: ...
5. Liability: ...
6. Ownership and Control: ...
7. Mutual Trust and Confidence.
      ADVANTAGES
 1. Businesses as partnerships do not have to pay income tax; each partner files the profits or losses of the business on his or her own personal income tax return. ...
 2. Easy to establish.
3.There is an increased ability to raise funds when there is more than one owner.
        DISADVANTAGES
1. the liability of the partners for the debts of the business is unlimited.
2. each partner is 'jointly and severally' liable for the partnership's debts; that is, each partner is
 3. liable for their share of the partnership debts as well as being liable for all the debts.

                 CREATE BY:MUSTAPHA AMINU                                     (RAKAKEZZY)
                 DEP:COMPUTER AND SOFTWARE                                  ENGINEERING