VCE Business Management Practice Questions - VCE Business Management Units 3 & 4 (Victorian Certificate Of Education) Exam

A sole trader has unlimited liability, meaning their personal assets are at risk to cover business debts, whereas shareholders of a public listed company have limited liability. A sole trader has limited liability up to their initial investment, whereas shareholders of a public listed company bear unlimited personal liability. Both sole traders and public listed company shareholders operate with complete joint and several unlimited liability. Sole traders enjoy limited liability through corporate registration, whereas public listed companies are owned by a single individual.