DWI CPD Test: CPD Course - Dentists Who Invest

Quiz

1. What is the main thing to consider when deciding whether to be a sole trader or a limited company?

The size of your office space

Your long-term goals and tax strategy

The type of products you sell

The number of employees you have

2. What's one reason why some people choose to form a limited company instead of being a sole trader?

To reduce paperwork and avoid tax filing

To save on taxes by accumulating surplus funds in the company

To eliminate all business risks

To pay taxes immediately

3. Why is it important to have goals when choosing between a sole trader and limited company?

To save money in the short term

To navigate future tax decisions and wealth management

To avoid paying any taxes

To buy property with minimal costs

4. What is a common goal when using a limited company for long-term wealth planning?

To immediately sell all assets and retire

To keep the wealth within the company for future family use

To use the company for short-term tax evasion

To avoid any inheritance tax

5. What is one potential disadvantage of having a holding company when selling a business?

You may lose out on business asset relief (BADR)

You avoid paying tax altogether

You gain an extra tax exemption

The company can be sold easily without paying any tax

DENTISTS WHO INVEST LIMITED IS A LIMITED COMPANY, REGISTERED IN ENGLAND AND WALES