Target: distinguish a sole trader, partnership, proprietary company and public company, with one cautious liability statement. Prepare: Case D, ownership cards aid.
- Launch · 2 min. Ask whether “public company” automatically means “listed on a stock exchange.” It does not.
- Model · 4 min. Sort D into one-owner sole trader, general partnership of two people, proprietary company, public company. A company is a separate legal entity with shareholders; its money is company money. Sole traders generally bear personal business liability; D's general partners have unlimited liability, while other partnership forms differ. Shareholder limited liability has boundaries, particularly for directors and other obligations; avoid a blanket promise.
- Guided reading · 5 min. Use D and the ASIC type guide to distinguish public status from listing and the company from its owners.
- Practice route · 7 min. Select Day 2 route. Compare two D structures for owner, separate legal entity and liability caution in a short response.
- Audit · 4 min. Correct “Pty Ltd shareholders can always use company cash personally.” Explain the company-ownership boundary.
- Exit · 3 min. “Is D's unlisted North Quay still a public company?” Expected: yes, as stipulated; public status and exchange listing differ.