Unit 1 Bus Man - Sole trader/Partnership - 3.6

A business entity is...

• an organisation that exists separately to its owner in order to produce and sell goods and services

• an organisation that does not exist separately to its owner in order to operate

• an organisation where the business and the owner are the same

Sole traders are:

• Incorporated

• Unincorporated

Partnerships are...

• Incorporated

• Unincorporated

• Can be both

A Private Company is...

• Incorporated

• Unincorporated

• Can be both

A Private company is...

• Unincorporated

• Incorporated

• Can be both

Incorporation is the process of...

• the company and the owner's being together as a legal entity

• the company and the owner's becoming a separate legal entity

Limited Liability is for which legal structure?

• sole trader

• partnerships

• companies

Sole traders are not a common form of legal structure in Australia.

• False

• True

If a business runs into financial difficulties, the owner is personally responsible for any business debts in which form of legal structure?

• PTY LTD

• LTD

• Partnership

An agreement between owners is a....

• hand shake

• common goals

• partnership agreement

• a pat on the back