Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › sole trader
- This topic has 5 replies, 2 voices, and was last updated 4 years ago by MikeLittle.
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- July 24, 2019 at 8:59 pm #524839
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,
July 25, 2019 at 4:31 pm #524893The business is carried on as a limited company!
July 26, 2019 at 9:28 am #524937Thanks for reply,
Can we say that this is a type of a” private limited company”
Thanks,
July 26, 2019 at 7:11 pm #524984You 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?
July 27, 2019 at 11:15 am #525033Thank you for your efforts.
July 28, 2019 at 9:13 am #525113You’re welcome – I just hope that you’re clear on this point now
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