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Terry
0450-18-M-J-11-3c
Chan
TOPIC QUESTION - PAPER 1
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Chan
May 17, 2026 at 7:36:21 AM
May/June 2018
Version 1
1.0 Understanding Business Activity
1.4 Types of Business Organization
YOUR ANSWER
Advantage 1: Owners and business are separate legal entities.
Explanation: As such, the family who owns IBH may not need to use their personal assets to repay debts.
Advantage 2: Able to sell shares
Explanation: As a private limited company, IBH owners can sell shares to other family and friends to raise funds to expand into the women's shoe market.
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