GROWTH DEVELOPMENT CHILD
DEVELOPMENT AND LEARNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Incorporated business
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Unincorporated business
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Limited Liability business
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Unlimited liability business
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Detailed explanation-1: -Companies are what lawyers call ‘separate legal entities’. In other words, they have their own legal identity and therefore can own property, enter into contracts and sue/be sued in their own right.
Detailed explanation-2: -A sole proprietorship is not a distinct legal entity. The single proprietorship business is run by one individual, who is also the owner of the firm.
Detailed explanation-3: -A sole trader is a self-employed person who owns and runs their own business as an individual. A sole trader business doesn’t have any legal identity separate to its owner, leading many to say that as a sole trader you are the business.
Detailed explanation-4: -A partnership has no separate legal personality from its members. Thus it cannot own property in its own name. For example, a lease of partnership premises is likely to be vested in the names of four partners with them having made a declaration of trust of the lease for the partners generally.