Sole trader: status, liability and control

7 building blocks · blurt the topic, then mark it block by block against the answer key.

Topic preview

Guided prompts in this topic

Preview the first part of the topic. Unlock FLK1 Playbook to answer prompts, get marked against the answer key, repair gaps, and carry the topic into review.

6 of 7 shown

01
No separate legal person
Say in one sentence whether a sole trader is legally separate from the person running the business.
02
Unified ownership and control
Explain who makes the trading decisions and why there is no split between ownership and management.
03
Personal exposure for debts
Give a short client explanation of what happens if the business owes money or is sued.
04
Personal assets at risk
Name the kinds of personal assets that may be at risk if liabilities are unpaid.
05
Business name is not entity
Tell a client whether choosing or registering a business name creates a separate legal person.
06
Insurance limits
Explain what insurance can do for a sole trader and what it cannot do.
1 more building block
The full topic unlocks with FLK1 Playbook, including the remaining prompts and answer-key marking.

New to the method? See why Paper Tiger beats rereading

Sole trader: status, liability and control

Guided prompts in this topic

No separate legal person

Unified ownership and control

Personal exposure for debts

Personal assets at risk

Business name is not entity

Insurance limits

1 more building block