Types Of Business

Question 1

What are the 4 types of businesses?

Answer 1

1. Sole trader
2. Partnership (general)
3. Limited liability partnership (LLP)
4. Limited

Question 2

3 points about a sole trader

Answer 2

1. Owned not separate from the business
2. Unlimited liability
3. Liable to income tax on profit

Question 3

4 points about a general partnership

Answer 3

1. Governed by partnership act 1890
2. Joint and several liabilities
3. Agency rules apply
4. Partners liable to income tax on their share of profit

Question 4

5 points about limited liability partnership

Answer 4

1. Governed by LLP act 2000
2. Members liability limited to capital contribution
3. Can hold and contract property
4. Partners liable to income tax on share of profit
5. Incorporated with companies house

Question 5

7 points about limited

Answer 5

1. Artificial legal person
2. Members liability limited to capital contribution
3. Directors get salary
4. Members get dividends
5. Company pays corporation tax
6. Incorporated with companies house
7. Certificate of incorporation issued