rn Flashcards
1
Q
What is a sole trader?
A
A sole trader is a business owned by one person
2
Q
What is a partnership
A
A partnership, other than a company, that is owned by two or more persons. The number of members of a partnership are limited by law. Max is 20
3
Q
What is a proprietary company
A
Proprietary company is a company that cannot raise money from the public. They must have at least one shareholder and a maximum of 50 non-employee shareholders. The word “Proprietary” or “pty” must be included in company’s name
4
Q
A small proprietary company must satisfy two of three condition. What are name the three conditions?
A
1.Revenue for year is less than 25 million
2.Assets at the end of the year are less than 12.5 million
3.Company has less than 50 employees at the end of the year
