Question Tag: Limited Companies

i) Sole Proprietorship:

1. The organisation is owned and run by an individual who makes all business decisions.
2. A trading name may be used, but there is no legal distinction between the individual and the business.

ii) Partnership:

1. The business is owned and run by two or more individuals.
2. A partnership name may be used, but the partnership is not a legal entity.

iii) Limited Companies:

1. A limited company has a separate legal personality from its owners (shareholders).
2. The shareholders cannot normally be sued for the debts of the business unless they have given some personal guarantee.