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Sole Traders have unlimited liability.
This means if the business goes into debt, the owner is responsible, and has to pay every last pence/cent to pay of the debt. This means that they may have to sell personal possessions i.e their house or their car.
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What is the liability of sole trader?
a sole trader has a limited liability. :)
Explain the significance of limited liability to sole trader and partnership?
Type Explain the significance of limited liability to sole trader
Features of private sector?
They are funded by the owners or shareholdersThey have limited liability if they are a limited company such as a LTD and they have unlimited liability if they are a sole trader or partnershipLovee from Mr. Pickles ;)
What are the disadvantages of sole proprietorships?
unlimited liability
What does the owner of a sole proprietorship have?
The owner of a sole proprietorship has unlimited liability.
The owner of a sole proprietorship has what liblilty?
unlimited liability
What are the 3 disadvantages of sole proprietorships?
unlimited liability
Characteristic of a sole trader?
the characterististics of a sole trader are: -unlimited liablitity -only one person controls the business which is called the sole trader - financial infomration is only visible for the owner of the business - the sole trader can keep all profit made by the business - it is a unicorporated business
What type of business has the most liability partnership sole proprietorship corporation or limited liability partnership?
The liability of various forms of business are as follows: Partnership: The liability of the partners is joint, several and unlimited. Sole proprietorship: The liability is of the proprietor is unlimited. LLP: The liability is limited by MOA and AOA.
Public liability insurance for a 16 year old sole trader?
public liability for a 16 year old mechanic
Sole trader disadvantages?
1. unlimited liability- if debt should occur from poor activity of the business the sole trader is responsible for paying it off with their own money, which could result in selling personal belongings. 2. sole trader is 1 person owning and running the business, although they may specialize in what they do e.g. hairdressing, they may not be able to deal with the financial side of running the business. 3. being a sole trader can result in working long hours and can find it hard to take time off when ill or for holidays.
What the owner has unlimited liability but collects all the profits from a business?
sole proprietorship
