Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.
Each question is worth 2 marks.
Which of the following are differences between sole traders and limited liability companies?
(1) A sole trader’s financial statements are private and never made available to third parties; a company’s financial statements are sent to shareholders and may be publicly filed
(2) Only companies have share capital
(3) A sole trader is fully and personally liable for any losses that the business might make
(4) Drawings would only appear in the financial statements of a sole trader
A 1 and 4 only
B 2, 3 and 4
C 2 and 3 only
D 1, 3 and 4
Answer：
B
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