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Speedy is used to being a sole trader.Explain two points on how he would have to adapt and change now that the business is a partnership

User Maryrose
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Answer:

A sole trader is a person who solely owns a business . In sole trading, the business and the person is considered as one hence the individual have to bear the profits and losses of the company. While partnership is a business comprised of two or more individuals

A partnership has various advantages. It's inexpensive to set up and there are few government regulations. While in a partnership the partners pay personal income taxes on their share of profits, they don't have to pay special taxes for being in a partnership.

Speedy will have to adapt and change as he is entering into a partnership.

  • He will have to consult his partner for making decisions, he cannot solely take any decision that might have adverse effect on the business.
  • He will have to discuss his needs and expectations with his partner. He should also be aware of his partners expectations. It prevents any misunderstands between them.

User NotAName
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