What do business owners risk when starting a new business?
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Explain the difference in risk between a sole trader and a shareholder in a company.
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Discuss how limited liability supports business growth and innovation.
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Define unlimited liability
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Which of the following businesses normally have limited liability? A) Sole trader B) Incorporated company C) Ordinary partnership
B
Discuss one reason limited liability is important for encouraging investment in big companies.
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Describe how unlimited liability can affect a sole trader during financial difficulty.
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Why is the casualty rate of new businesses high in their first year?
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Which of the following best defines unlimited liability? A) The owner is responsible for all business debts. B) The owner can only lose the amount invested. C) The owner is not responsible for debts at all.
A
What makes it easier for limited companies to raise large sums of money? A) Limited liability attracts more investors. B) They have no legal obligations. C) They avoid paying taxes
A
Describe what would happen if a business with unlimited liability cannot pay its debts.
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Why does limited liability encourage people to invest in companies?
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What is liability?
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Explain why limited liability is considered a legal protection.
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What type of business owners usually have unlimited liability?
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Define limited liability.
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Explain how business owners face risk when investing their own capital.
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What does the word risk mean in a business context?
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