BUAW - Understanding business

Question 1

What does incorporated mean?

Answer 1

The business is a separate legal entity

Question 2

What financial statements does a sole trader need?

Answer 2

P+L and SFP

Question 3

What financial statements do partnerships need?

Answer 3

P+L and SFP

Question 4

When is goodwill used in a partnership?

Answer 4

When a partner leaves or a new partner joins

Question 5

What financial statements does a Limited Liability Partnership need?

Answer 5

SFP
P+L
Auditors report

Question 6

What’s the difference between an LLP and a Limited Partnership?

Answer 6

A limited Partnership will have at least one general partner and one limited partner

Question 7

What’s the difference between a general and limited partner?

Answer 7

Limited partners have limited liability while general partners have unlimited liability

Question 8

When can a company become a Public Limited Company?

Answer 8

• More than 50k of issued share capital
• At least two members
• At least two directors

Question 9

When can a company become a Private Limited Company?

Answer 9

• No minimum issued share capital
• At least one member
• At least one director who can be the sole shareholder

Question 10

What are the different qualities of a business?

Answer 10

• Intangibilty
• Inseparability
• Perishability
• Variability