WorksheetsSole Traders
Total questions: 15
Worksheet time: 7mins
A sole proprietor has to share the profits made by the business. True or False?
True
False
Select TWO true statements that relate to a sole trader.
Sole traders have limited liability
Sole traders get to make all their own decisions about the business
Sole traders may find it harder to raise funds for the business
Sole traders usually get more holidays than partners or directors
Unlimited Liability is
The owner has to pay off all the debts of the business. To the extent that their private assets may be sold to cover the businesses debts.
When a company's shareholders have to pay only their share value to meet debts incurred by the company.
Sole traders have unlimited liability. True or False?
False
True
What are 3 of the benefits of being a sole trader?
Easy to establish
Keep all the profit
Get to make all the decisions
Unlimited liability
What is unlimited liability?
If the business fails you will not lose personal possessions
If the business fails you will lose personal possessions
If the business fails the debtors become shareholders
If the business fails the debtors take over
