Legal ownership

Question 1

Sole trader

Answer 1

A sole trader is an unincorporated business with one owner. unlimited liability, limited funds no holidays.

Question 2

Example of a sole trader?

Answer 2

Trades people

Question 3

Partnership

Answer 3

A partnership is an unincorporated business that has more than one owner. Usually 2-20 owners.

Question 4

Partnership example and liability rating

Answer 4

unlimited liability Law firms. Lots of risk with fallout of partners but partnership act 1829 protects equality.

Question 5

PRIVATE COMPANY. (Proprietary Limited. PTY LTD)

Answer 5

1-50 owners - called shareholders imited liability. This means that owners are not liable for the debts of the business.

Question 6

Why limited liability for private

Answer 6

Private companies are legal entities separate from their owners. directors are charged.

Question 7

PUBLIC COMPANY. (Limited. LTD)

Answer 7

no upper limit
Are owned by the public - private individuals and limited liability. asx controlled