Yr12 Youtube Lectures Flashcards
1
Q
What is a sole trader?
A
A sole trader is one person who owns and runs a business (with no investors or shareholders)
2
Q
The business must be registered with _________ if different from the individual __________ name
A
ASIC, owner’s
3
Q
Describe two businesses where one needs to register with ASIC and the other not.
A
“Daniel Murphy” could apply for an ABN and conduct business that way without having to register with ASIC.
“Dan Murphy’s” would be a business name that requires registration with the ASIC.
4
Q
Describe the legal entity of a sole trader
A
The individual and the business have the same legal entity, where a sole trader has unlimited liability. Owners are held fully responsible for all operations of the business. If the business is sued, the owner is sued.
