Choosing the Legal Business Structure (VCE SSCE Business Management): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
ShowHide
Practise the cards
10 cards from this deck
Sole trader
Sole trader
Individual who exclusively owns and runs a business
Unlimited liability
Unlimited liability
Personal assets at risk to pay business debts
Partnership size in Australia
Partnership size in Australia
2 to 20 partners
General partnership liability
General partnership liability
All partners have unlimited liability
Limited partnership feature
Limited partnership feature
Some partners liable only up to their investment
Pty Ltd max shareholders
Pty Ltd max shareholders
Maximum 50 shareholders
Ltd company shareholders
Ltd company shareholders
Unlimited number of shareholders
Incorporation
Incorporation
Legal process making business separate from owners
Limited liability (companies)
Limited liability (companies)
Shareholders only liable up to their investment amount
Joint liability in partnerships
Joint liability in partnerships
Each partner liable for debts created by any other partner