7. Choosing The Right Legal Structure For The Business Flashcards
0
Q
Limited liability
A
Feature of incorporated businesses (PLC’s) which means that the owners liability is limited to the amount they have invested in the business
1
Q
Unlimited liability
A
A feature of unincorporated businesses where the owners are personally liable for all debts incurred by a business. All sole traders and partnerships.
2
Q
Separation of ownership and control
A
A situation where the owners (shareholders) are not people who control the business and have different objectives.
