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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › sole trader
Hi Mr MIke ,
One of the questions of practice test in opentuition says :
Jasmine runs her own shoe shop “Jasmine shoe Limited” ,which statement best describe the extent of Jasmine’s liability of her business,
I chosen that
There is no limit to her liability
but the correct answer is
Her liability is limited to the value of shares yet unpaid ,
How is that
Isn’t it the sole trader is totally liable for her own business ,
Please clarify
Thanks,
The business is carried on as a limited company!
Thanks for reply,
Can we say that this is a type of a” private limited company”
Thanks,
You can say nothing else! It certainly IS a private limited company – the word ‘Limited’ at the end of the name tells you that it is a private. Limited. Company
OK?
Thank you for your efforts.
You’re welcome – I just hope that you’re clear on this point now
