What is a key feature of a sole trader business?

Question

BlackTom AI · Accepted Answer

Question: What is a key feature of a sole trader business?

Option a: Limited liability
- This is incorrect for a sole trader. In a sole proprietorship, the owner has unlimited personal liability for business debts, meaning personal assets can be used to settle business obligations.

Option b: Solely liable for all business debts
- This statement is correct. A sole trader operates without a separate legal entity from the owner, so the owner bears unlimited personal liability for debts and obligations of the business.

Option c: Separate legal entity
- This is incorrect. A separate legal entity is characteristic of a company (e.g., a limited company), not a sole trader. A company is distinct from its owners and provides limited liability, whereas a sole trader does not.

Option d: Requires a partnership agreement
- This is incorrect. A sole trader runs the business alone and does not require a partnership agreement, which governs relationships between two or more partners in a partnership.

In summary, among the options, the defining feature of a sole trader is the unlimited personal liability the owner bears for business debts, which aligns with option b. The other choices describe features of other business structures (limited liability for companies, separate legal entity status, and partnerships) that do not apply to a sole trader.

My home Practice Quiz [non-assessed]

What is a key feature of a sole trader business?

查看解析

登录即可查看完整答案

类似问题

Which of the following is an advantage of a sole trader business?

A sole proprietor has Blank ______ personal liability for all business debts and obligations.

Which of the following entities is a “sole trader”?

If Sally owns her own business and pays for its expenses on her credit card, she is most likely a(n) Blank and is Blank for all her credit card charges. BlackTom题目解析

Choose the correct answer from the below about sole trader

Which of the following is a strength of a sole proprietorship?

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单

My home Practice Quiz [non-assessed]

What is a key feature of a sole trader business?

查看解析

登录即可查看完整答案

类似问题

Which of the following is an advantage of a sole trader business?

A sole proprietor has Blank ______ personal liability for all business debts and obligations.

Which of the following entities is a “sole trader”?

If Sally owns her own business and pays for its expenses on her credit card, she is most likely a(n) Blank ______ and is Blank ______ for all her credit card charges. BlackTom题目解析

Choose the correct answer from the below about sole trader

Which of the following is a strength of a sole proprietorship?

更多留学生实用工具

希望你的学习变得更简单

If Sally owns her own business and pays for its expenses on her credit card, she is most likely a(n) Blank and is Blank for all her credit card charges. BlackTom题目解析