BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sole traders have unlimited liability but all partnerships enjoy limited liability.
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Sole traders are very small businesses that employ just a few workers, and partnerships are always larger than sole trader businesses.
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Sole traders are businesses owned by one person but partnerships have two or more owners.
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Sole traders are run by the less educated like corner shop owners, but partnerships are formed by licensed professionals like lawyers and accountants.
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Detailed explanation-1: -A sole trader can only be one individual. If two or more individuals agree to join together in business, then they shall form a partnership. The individual is responsible for all decision making. There is little distinction between the business owner and the business.
Detailed explanation-2: -Sole traders have more control, but more liability On the flip side, you’re legally responsible for any debts or losses incurred. If the business is in trouble, your personal assets may come under threat. In a company, your degree of control depends on the structure in place, and whether you’re the sole director.
Detailed explanation-3: -A sole proprietorship has one owner, while a partnership has two or more owners. Sole proprietorships and partnerships are common business entities that are simple for owners to form and maintain. The main difference between the two is the number of owners.