basic1 / 10

Business Law and Practice·Business Organisations

Five common forms of business organisation exist in England and Wales: a sole trader, a general partnership, a Limited Liability Partnership (LLP), a private company limited by shares (Ltd), and a public company (PLC) – including an unlisted public company. A founder has experience with the first three forms and is considering converting to a private Ltd or an unlisted PLC to raise funds. Which of the following statements is MOST accurate about the five forms in terms of legal personality and liability?

AA sole trader is a separate legal entity from the owner, and the owner has limited liability for business debts.BIn a general partnership there is a separate legal personality, with partners having limited liability for partnership debts.CAn LLP has unlimited liability for its members, and it is not a separate legal entity.DA private company (Ltd) has separate legal personality and the liability of its members is limited to the amount unpaid on their shares.EAn unlisted public company has no separate legal personality.

Try 10 Free SQE1 Practice Questions

Want more?

What You Get with Full Access

14,000+ Questions

AI Tutor

Mock Exams

92% Score Improvement