Benefit Limited Liability Flashcards
(8 cards)
1
Q
1
A
If the business has any debt or owes a supplier due to trade credit
2
Q
2
A
Unable to pay there debts due to something(relevant to case study.)
3
Q
3
A
Debt dose not need to be payed by shareholders/owners
4
Q
4
A
Low risk for investors and owners not risking personal possessions
5
Q
5
A
Making product or service price inelastic
6
Q
6
A
Can increase price without significant fall in demand
7
Q
7
A
More gross profit
8
Q
8
A
More operating profit
