Final answer:
Choosing between a sole trader or partnership business depends on individual preferences for control, risk tolerance, and resource sharing.
Public limited companies offer capital-raising abilities and limited liability, but face strict regulations and potential shareholder influence on management.
Step-by-step explanation:
Deciding between being a sole trader or entering into a partnership business depends on various factors including personal preference, willingness to share decision-making, and the level of acceptable risk.
As a sole trader, the autonomy to make all decisions and keep all profits can be appealing, as can the simplicity of set-up and management.
However, the sole trader also bears all the risks and responsibilities, which can be a significant burden. On the contrary, a partnership allows for shared responsibility, potentially more capital, and diverse skill sets. The disadvantages may include disagreements among partners and shared liability for business debts.
A public limited company (PLC) offers advantages such as the ability to raise substantial capital through the sale of shares to the public and limited liability, which protects shareholders' personal assets from the company's debts.
On the downside, PLCs face stringent regulatory requirements and a possible loss of control as shareholders have a say in company decisions.