Topics covered: Sole trader and Partnership
• Meaning
• Advantages
• Disadvantages
Adam is an expert computer engineer. He currently works for a large computer manufacturer as its systems head. He thinks that he could run his own business but he has no experience of running a business. Adam has a little amount of savings to invest into a business.
Adam has a rich uncle, Amin, who knows nothing about computers but knows how to run a business. He is friendly but sometimes bossy as he always thinks that he knows best.
Questions:
a) Define the term sole trader. [2 marks]
b) Define the term partnership. [2 marks]
c) Explain two advantages for Adam of running his own business rather than working for the computer manufacturer. [4 marks]
d) Explain two disadvantages for Adam of running his own business rather than working for the computer manufacturer. [4 marks]
e) Discuss advantages and disadvantages for Adam of forming a partnership with his uncle Amin. [10 marks]
