What is unincorporated business?

Sole traders and Partnerships are an example of unincorporated businesses.

A sole trader is set up, owned and run by one person, such as a traditional corner shop.

A partnership can be set up and run by multiple businessmen, and tend to be the professions (such as the dentists and doctors).

Advanatges include:

- Greater control over the business by the owner

- Quick decisions can be made

- Small-scale business, so small amounts of capital needed

Disadvantage of unincorporated businesses is that they have unlimited liability. This means that the owners themselves can be held responsible for any debts a business may incur. So the owners’ own personal savings have to be used to pay the debts.

other disadvanatges:

- Small-scale nature makes it difficult to expand.

- Responsibility cannot be shared easily - especially if sole trader

Related Business Studies GCSE answers

All answers ▸

Please define marketing mix. What is its importance for business?


What is a stakeholder? Identify two stakeholders and there role in a business.


How can I achieve full marks in a long answer question?


What are two benefits of a USP (unique selling point) for a business like Coca Cola?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy
Cookie Preferences