Unincorporated Business Flashcards
1
Q
Unincorporated businesses
A
Sole traders and partnerships are unincorporated businesses. This means that there is no legal distinction between the business and their owner.
2
Q
Consequently sole traders and partners have unlimited liability
A
3
Q
.
A
4
Q
A
if the business does not have the resources to pay its liabilities the owners must meet the claims against the business.
5
Q
.
A
6
Q
Tax does not appear in the accounts of unincorporated businesses as the owners are taxed
A
7
Q
personally on the profits of the business.
A
