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QLDBusinessQuick questions
Unit 1: Business creation
Quick questions on Business structures: sole trader, partnership, company, trust (QCE Business Unit 1)
4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is choosing the right structure?Show answer
Many established Australian businesses use a combined structure - a trust holding the shares of a trading company - to combine the tax flexibility of a trust with the limited liability of a company.
What are pros?Show answer
Simple and cheap to set up. Minimal ongoing compliance. Owner keeps all profit.
What are cons?Show answer
Unlimited personal liability. Limited capacity to raise capital. Business ends if the owner stops trading.
What is common use?Show answer
Trades (plumbers, electricians), small retail, freelance professionals, food trucks, contractors.
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