Unlimited Liability! Flashcards
1
Q
What is unlimited liability?
A
entrepreneurs risk includes personal assets and it is unincorporated
2
Q
What is unincorporated?
A
business and owners are not seperate
3
Q
2
List of unlimited liabilities!
A
- Sole Traders
- Partnership
4
Q
What is sole traders?
A
Business run by a person and it is self employed.
5
Q
How is sole traders (business) registed?
A
registered with the inland revenue!
6
Q
For sole traders: What happens if owners dies ?
A
Business dies as well!
7
Q
What is Partnership!
A
Business run by 2 to 20 people!
8
Q
What is Deed of Partnership!
A
A legal document: (e.g salaries of each partner etc)
9
Q
List 2 types of partners!
A
- Active partners
- Sleeping partners
10
Q
What is Active partners?
A
Partners who work every day in the business!
11
Q
What’s sleeping partners?
A
Someone who invest in the business, but without an active part!
