Small business
2007-01-07 10:31:03 · 4 answers · asked by slim 1 in Business & Finance ➔ Small Business
Apart from the business closing, the proprietor is personally liable for all unpaid debts of the business, including borrowings from the bank, VAT, employee deductions, stock, rent etc. This means that all of the proprietor's personal assets, including house, savings, pension funds etc can be taken by the creditors to pay the debts.
2007-01-07 10:51:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
the owner of the company has taded as a sole trader. by doing this they have declared themself as solely responsible for the company, should the company fail (go into administration or insolvency) then any debt outstanding to suppliers and so on will be down to the sole trader. the norm is court hearings and depending on the amount of debt and whether there is any tax debt then the owner could possibly be stuck off and fined. this would mean they were not allowed to run there own business. being a sole trader the debt outstanding can be paid of by any assets the owner may have, including house, vehicles etc.
hope it's not you that has failed.
2007-01-07 18:45:12 · answer #2 · answered by Just Me.... 3 · 0⤊ 0⤋
it simply closes down within no time.
2007-01-07 18:44:01 · answer #3 · answered by mickey 2 · 1⤊ 0⤋
it shuts down
2007-01-07 18:33:22 · answer #4 · answered by stacie w 2 · 1⤊ 0⤋