Accounting entity, legal entity and business ownership structures

What this note covers

1. Two separate questions: who reports, and who is liable
2. Sole trader: one owner, full personal liability
3. Partnership: shared ownership, shared personal liability
4. Company: a separate legal person, limited liability
5. Worked comparison: the same transaction, three structures
6. Stakeholders and their information needs by structure
7. How this is examined and what separates a top response

7 sections · 12 key terms & formulas · 6 common mistakes