Forms Of Ownership

Question 1

Unlimited liability.

Answer 1

The debts of the business are also the debts of the owners

Question 2

Limited lability

Answer 2

The debts of the business are not the debts of the owner/(s)

Question 3

What is a separate entity.

Answer 3

The business operates under it’s own name , separate from the name/(s) of its owner/(s)

Question 4

Jointly and severally liable.

Answer 4

Decisions made by a person affects everyone in the business. This also applies to debt and the debt of one person becomes the debt of everyone in the business.

Question 5

Personal tax

Answer 5

Tax payable per tax table

Question 6

Company tax

Answer 6

Tax payable at the percentage of 28-29%

Question 7

Freely transferable

Answer 7

Shares can be sold publicly to anyone willing to buy the shares of profits and losses of the Company.

Question 8

Shareholder

Answer 8

Someone who invests in the business and will share in the profits and losses in the business