Which of the following statements is a difference between a sole trader and a limited company?

Select one:

A. If a sole trader becomes insolvent the owner has unlimited liability, but the owners of limited companies only have limited liability.

B. Sole traders can issue shares to the public, whereas limited companies cannot.

C. The statement of financial position for a sole trader has a much stricter format than the statement that limited companies produce.

D. Sole trader businesses are legal entities in their own right whereas a limited company is not.