FA1: Topic1: intro part 3

What is the definition of a sole proprietorship?

• A sole proprietorship is a business structure where an individual is fully responsible for all aspects of the business, including finances, debts, and legal obligations. It is not a separate legal entity from the owner.
• A sole proprietorship is a business structure where multiple individuals share ownership and responsibility equally.
• A sole proprietorship is a business structure where the owner is not liable for any debts or legal obligations.

What are the advantages of a sole proprietorship?

• Limited liability protection, complex tax requirements
• Shared decision-making, high start-up costs
• Full control over decision-making, easy and inexpensive to start, direct access to profits, minimal regulatory requirements

What is a partnership?

• A partnership is a business structure where two or more individuals manage and operate a business together.
• A partnership is a legal agreement between two companies.
• A partnership is a type of solo business operation.

What are the advantages of a partnership?

• Shared decision-making, increased resources, diversified skills, shared risks
• Unlimited liability, reduced control
• Limited resources, increased risks

What are the two types of limited companies?

• Unlimited companies and sole proprietorships
• Non-profit companies and cooperative companies
• Private limited companies and public limited companies

What are the advantages of limited companies?

• Limited liability protection and separate legal entity for easier transfer of ownership and raising capital.
• No legal protection and difficulty in raising capital
• Unlimited liability and complex ownership structure