Commerce Questions and Answers

Advantages of a partnership include that:

• two heads (or more) are better than one.
• your business is easy to establish and start-up costs are low.
• more capital is available for the business.
• you'll have greater borrowing capacity.
• high-calibre employees can be made partners.

Sole proprietorships are not companies – you cannot sell shares to investors to raise capital.  Most times, you'll be relying on your own resources, such as savings and retained profits, borrowing and grants from friends, as well as bank loans and credit cards to raise the money you need.

Durability is critical for money to perform the related functions of medium of exchange and store of value.  An item must be able to withstand being used repeatedly.

A sole proprietorship, also known as the sole trader, individual entrepreneurship is a form of business organization, wherein a single person owns, manages and controls, all the business activities

Unlimited liability means you are exposed to potential losses based on company obligations. In the event of liquidation the personal property of its owner is used to settle the business debt