Business Structure Flashcards
1
Q
What are 2 advantages of a company?
A
a
2
Q
What are 2 advantages of a partnership?
A
a
3
Q
What are 2 advantages of a sole trader?
A
The owner can often work his or her hours and run the business as he or sees fit.
All profits are the property of the owner.
4
Q
What are 2 disadvantages of a company?
A
a
5
Q
What are 2 disadvantages of a partnership?
A
a
6
Q
What are 2 disadvantages of a sole trader?
A
a
7
Q
What is the definition of unlimited liability?
A
If the business fails the personal assets of the owner can be used to pay business debts.
8
Q
What is the definition of limited liability?
A
If the business fails the personal assets of the owner cannot be used to pay business debts.
