Unlimited liabilty, Limited liabilty, Sole traders

Question 1

Whats the difference between limited and unlimited liability?

Answer 1

Limited - can only lose what you invest

Unlimited - can lose all belongings

Question 2

Businesses with unlimited liability?

Answer 2

Sole traders

Question 3

Adv and Dis adv of private limited companies

Answer 3

ADV

• in the death of a member the business leeps running
• dividends paid out to shareholders

DIS ADV

• Max 50 people
• Limited growth
• Takes time to set up