Types of Business Organisations

?

Features of an unincorporated business

  • Unlimited Libality - The owner(s) of a business are personally liable for any debts the business may have. They may have to sell their car, house etc. to pay for debts of the company.
  • Tax on Profits - Income tax is paid on the profits that the business makes
  • Continuity - The business, in its present form, cease on death on one of the owners.
  • Financial Information - Remains Private to the owners of the business
  • Bankruptcy - Occurs when the business is unable to pay its debts.
1 of 1

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Balance sheets resources »