12 Characteristics of Business Types

Sole Traders have how many owners?

• 1

• 2-20 (some exceptions)

• 1-50 non-employee members (shareholders)

Partnerships have how many owners?

• 1

• 2-20 (some exceptions)

• 1-50 non-employee members (shareholders)

Small Proprietary Companies have how many owners?

• 1

• 2-20 (some exceptions)

• 1-50 non-employee members (shareholders)

Sole Traders are subject to what type of liability?

• Unlimited (owner personal assets used to pay debts)

• Limited (only business assets used to pay debts)

• Possible some (not all) partners have limited liability

Select 2: Partnerships are subject to what type of liability?

• Unlimited (owner personal assets used to pay debts)

• Limited (only business assets used to pay debts)

• Possible some (not all) partners have limited liability

Small Proprietary Companies are subject to what type of liability?

• Unlimited (owner personal assets used to pay debts)

• Limited (only business assets used to pay debts)

• Possible some (not all) partners have limited liability

The ability of Sole Traders to raise capital or borrow funds is...

• limited

• moderate

• easy

The ability of Partnerships to raise capital or borrow funds is...

• limited

• moderate

• easy

The ability of Small Proprietary Companies to raise capital or borrow funds is...

• limited

• moderate

• easy

For Partnerships transfer of ownership is...

• difficult

• simple