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Homework answers / question archive / Attached is the 'Business Structures' template you are required to complete and submit prior to the beginning of the online tutorial session in Week 6
Attached is the 'Business Structures' template you are required to complete and submit prior to the beginning of the online tutorial session in Week 6. Remember you need to determine which type of business structure the business you have chosen is, i.e. either a sole trader, partnership or private company, and the industry it is in. This is your chance to get creative! When you complete the template make sure your responses are applied to your business. We do not want you to use a public company or a trust structure.
Industry: banking
Business Name: AAA chit funds
Structure : sole trader
Advantages
the sole propritership is easy to form. there are no much difficulties for a sole trader business to be formed when compared to a company and partnership business.
there is only one boss and he is answerable to no one else and he takes decisons in the best interest of him.
as it is operated by only one person he can take the whole profit and gains from the business and it need not be shared with anyone. no need to pay tax separately for the profit of business. the person who operates the business has the maximum privacy. the start up cost for the business is low compared to others.
Disadvantages
the liability of the sole trader is unlimited, which means he has to pay the debts of the business out of his personal property.
the finance for the sole propritership is limited as the trader himself raises finance for the business and limited scope for expansion
the sole trader may be lacking professional and management skill and it affects the operations of business.so there is a risk that the decisions taken may be wrong.
Regulatory sources
Reserve bank of india is the regulatory authority of the banking sector
