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Unit 1 & 2 theory
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How many number of owners - SOLE TRADER
1
How many number of owners - PARTNERSHIP
2 - 20 (with some exceptions for large professional partnerships such as lawyers & accountants
How many number of owners - SMALL PROPRIETARY COMPANY
1 - 50 non-employee shareholders
Liability of owners - SOLE TRADER
UNLIMITED LIABILITY - this means the owner is personally liable for all business debts and their personal assets may be seized to settle debts.
Liability of owners - PARTNERSHIP
Partnerships have UNLIMITED LIABILITY and partners are JOINTLY AND SEVERALLY LIABLE for the obligations of the business.
Meaning that all partners share responsibility for debts, and creditors can pursue any partner for the full amount owed.
Liability of owners - SMALL PROPRIETARY COMPANY
LIMITED LIABILITY. The liability of owners is limited to amounts owing on their shares. Personal assets of a company’s owners can’t be seized to settle business debts