5 Questions
Which type of business structure has unlimited liability for the debts of the business?
Sole trader
What is a disadvantage of partnerships?
Limited liability
Which type of business structure offers more protection and benefits for the owners?
Private limited company
What is the main advantage of being a sole trader?
Complete control
What is the purpose of a partnership agreement?
To outline the terms of the partnership
Study Notes
Business Structures
- A sole trader has unlimited liability for the debts of the business.
Disadvantages of Partnerships
- One of the disadvantages of partnerships is the unlimited liability for the debts of the business.
Business Structure Benefits
- A limited liability company (LLC) offers more protection and benefits for the owners.
Sole Trader Advantages
- The main advantage of being a sole trader is the simplicity and ease of setting up and running the business.
Partnership Agreement
- The purpose of a partnership agreement is to outline the terms and conditions of the partnership, including the roles and responsibilities of each partner, profit sharing, and decision-making processes.
Test your knowledge on business structures with this quiz! Learn about the differences between sole trader and partnership, including liability, ownership, and control. Perfect for entrepreneurs and aspiring business owners.
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