Sole trader Study guides, Revision notes & Summaries

Two years ago, Aadi had set up in business as a sole trader. He invested all of his savings of £10,000 in the business. Recently the business has struggled financially, and a major supplier is owed £18,000. Aadi realises that he will have to sell the business and calculates that if all of its assets were sold, they would realise £8,000. Aadi himself owns a car worth £5,000. He owns a flat which, if sold, will raise £50,000 once the mortgage is paid off. He has no other substantial assets. T...

Sole Trader correct answer: this is the simplest form of business entity where a business is owned and operated by one individual. With this form of entity there is no distinction in law between and owner and the business. Partnership correct answer: this is similar to a sole trader in that the owners of the partnership share all the profits and have unlimited liability for the losses and debts of the business. The key distinction is that there are at least two owners. Limited Liability ...

Sole trader: Definition - ANSWER The person carrying on business as an independent Individual. The business is the individual and they are indistinguishable. The business is owned and controlled by 'X' who enjoys all the profits and is directly liable for tax on income earned. Sole trader: Liability - ANSWER Unlimited Indemnity (Definition) - ANSWER Security or protection against a loss or other financial burden Sole Trader: Liability Minimising strategies - ANSWER Insurance policies: - ...

Primary activity - - extract raw materials - e.g. mining, farming, fishing, extraction (gas, oil, mineral water) Secondary activity - - manufacturing products - e.g. factories, mills, construction Tertiary activity - - provides a service - e.g. retailers, personal services, business services Private sector - - owned by individuals - e.g. TESCO PLC, Coca-cola Enterpises LTD Public sector - -owned by the state/government - e.g. NHS, Ofsted, The British Army, BBC, Local authority refuse co...

AQA A level business 3.1 Questions and Answers 100% Pass What are the aims of business? x5 Survival Cash flow (liqudity) profit (where the total revenue>total costs) Growth Social and ethical objectives Define what a mission statement is? A qualitative statement of an organisation's overall mission or purpose Reasons for mission statement x2 To provide a clear goal , purpose and sense fo direction To communicate to stalkholders What are the goals available for a business to achieve? x4 Mi...

Sole Trader correct answer: this is the simplest form of business entity where a business is owned and operated by one individual. With this form of entity there is no distinction in law between and owner and the business. Partnership correct answer: this is similar to a sole trader in that the owners of the partnership share all the profits and have unlimited liability for the losses and debts of the business. The key distinction is that there are at least two owners. Limited Liability ...

CIPS L3M1 questions well answered graded A+ 2024/2025Private incorporated companies are... - correct answer Seperate from their owners Private unincorporated companies have... - correct answer No legal distinction from their owners Sole trader - correct answer Those with exclusive ownership of a business Partnerships - correct answer Legal forms of a business with 2+ owners General partnership - correct answer a type of partnership in which all partners share equally in both res...

ICAEW ACA Accounting Questions and Answers Rated A+ Accounting A way of recording, analysing and summarising transactions of an entity. Statement of Profit and Loss It reflects the performance of a business over a period of time. Statement of Financial Position It reflects the position of a business at a point in time. Users of Accounting Any organisation/business/individual who needs to keep track of their income, expenses, assets and liabilities. Types of Business Entity •...

2 Section A Answer all questions in this section. Only one answer per question is allowed. For each question completely fill in the circle alongside the appropriate answer. CORRECT METHOD WRONG METHODS If you want to change your answer you must cross out your original answer as shown. If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown. 0 1 A company decides to rely only on decision trees to decide whether to accept a project. If...

BLAW211 Final Test with Complete Solutions 100 Pass What is a sole trader? - Answer-1 person operating on their own Can they have a trading name? - Answer-Yes What type of liability do they have? - Answer-Unlimited. Meaning that their personal assets are at risk if the business fails What is the applicable law? - Answer-The consumer guarantees act What is the definition of a partnership? - Answer-"The relationship which subsists between persons carrying on a business in common ...