Business Organisations Flashcards
(32 cards)
Who owns a sole trader?
The sole trader
What is the legal status of a sole trader?
The sole trader is the business
How many members of a sole trader?
One
What is the liability for a sole trader?
The sole trader has unlimited liability for the debts of the business
What legislation are sole traders bound by?
None
What regulations are sole traders bound by?
None
What is the management of sole traders?
The owner makes all decisions
What are the requirements of a sole traders financial statements?
They are private, so not available to the public
Who owns a partnership?
The partners
What is the legal status of a partnership?
The partners are the business
How many members of a partnership?
Between 2 and 20 (normal maximum)
What is the liability for a partnership?
Partners normally liable for entire partnership debt
What legislation are partnerships bound by?
Partnership Act 1890
What regulations are partnerships bound by?
Written or oral partnership agreement
What is the management of partnerships?
All partners normally take an active part
What are the requirements of a partnerships financial statements?
They are private, so not available to the public
Who owns a limited liability partnership?
The members
What is the legal status of a limited liability partnership?
Separate legal entity from its members
How many members of a limited liability partnership?
2 or more, with at least 2 designated members
(who have responsibility for keeping and filing accounts)
What is the liability for a limited liability partnership?
Members can only lose their investment
What legislation are limited liability partnerships bound by?
Limited Partnership Act 2000
What regulations are limited liability partnerships bound by?
Written or oral LLP agreement
What is the management of limited liability partnerships?
All members entitled to take an active part
What are the requirements of a limited liability partnerships financial statements?
Must be filed at Companies House where available to the public
