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WorksheetsSole trader & Partnership
Total questions: 11
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
Decision is taken in partnership firm
Individually
By the partner who has invested more money
By anyone
Mutually
How many partners are there in a typical partnership?
2
2-4
2-20
1
