Limited and unlimited liability GCSE Business

Описание: Limited and unlimited liability GCSE Business
What is limited liability ?
What is unlimited liability ?
This is part of a GCSE Business revision series.
What are The options for start-up and small businesses?
There are a number of different options when setting up a new or small business. These may depend on the size of the business, the number of owners and the level of risk owners are willing to take.
Limited and unlimited liability
What is Limited liability?
Limited liability means that the business owner or owners are only responsible for business debts up to the value of their financial investment in the business. This means that a creditor can only take assets or finances belonging to the company. Limited liability only applies to certain types of business, such as private limited companies.
What is Unlimited liability?
Unlimited liability means that the business owner or owners are personally responsible for all of the debts of the business, no matter what the value.

What are the main difference between unlimited and limited liability?
The main difference between unlimited and limited liability is the level of risk that a business is willing to take. Having unlimited liability is a bigger risk for any business than having limited liability.
The options for start-up and small businesses
There are a number of different options when setting up a new or small business. These may depend on the size of the business, the number of owners and the level of risk owners are willing to take.