2 1.4 Which of the following are advantages of trading as a limited liability company? 1 Operating as a limited liability company makes raising finance easier because additional shares can be issued to raise additional cash. 2 Operating as a limited liability company is more risky than operating as a sole trader because the shareholders of a business are liable for all the debts of the business whereas the sole trader is only liable for the debts up to the amount he has invested. O 1 only O 2 only Both 1 and 2 Neither 1 or 2 (2 marks)