B Rationale: In a limited company, the owners (shareholders) are separate from the managers of
the concern (board of directors).
Pitfalls: Some options look plausible because of the wording. ‘Limited’ doesn’t mean ‘only being
allowed to trade up to’ – but looks as if it might. The second half of the statement about
partnerships is true – but this doesn’t mean that the first half is also true.
Ways in: You should have been able to rule out A (no company’s turnover is limited), C (sole
traders do have personal liability for debts: they do not have ‘limited liability’) and D (ordinary
partnerships are different from limited companies).