1.4 GCSE Business - Liablity test!

What is a sole trader?

Unlimited liability means being responsible for all debts, what does 'limited liability' mean?

So, if owners of a business are separated from the entity of a business, this means they are:

What does the word 'liable' mean?

So, how does a sole trader (or partnership) become a company?

What does 'unlimited liability' mean?

In law, is a self-employed person seen as having the same financial identity as their business?

What are 'shares' in a company?

So, 'limited liability' means that the financial liability (who is liable for the debts) is:

In law, are company owners seen as having the same financial identity as their business?

In business, who has 'unlimited liability'?

Why might someone want to form a company, instead of remaining as a sole trader?

Sole traders/partnerships have unlimited liability & companies have limited liability!

In law, are partners seen as having the same financial identity as their business?

Company owners are not regarded by law as the same identity as their business

So, if a sole trader or partnership has 'unlimited liability', what does that mean?

What does the term 'liability' mean in business terms?