LO1: unincorporated associations

Question 1

what is an unincorporated association?

Answer 1

an organisation set up by an agreement between 2 or more people for a reason other than to make profit

Question 2

what is an example of an unincorporated association?

Answer 2

voluntary groups and sports clubs

Question 3

advantages of unincorporated association? (4)

Answer 3

-usually small- so little capital needed.
-they can be set up quickly and cheaply
-flexible structure
-can apply to be a charity

Question 4

disadvantages of unincorporated association? (4)

Answer 4

-each member has unlimited liability
-extra capital may be hard to obtain
-unincorporated: so can’t own property in the businesses name
-complications of members joining and leaving