Topic 1.4.1 Business Ownership and Liability Flashcards
(6 cards)
1
Q
What does it mean to be bankrupt?
A
when an individual is unable to pay their debts, even after all personal assets have been sold for cash
2
Q
What is a sole trader?
A
a business run by one person ; that person has unlimited liability for any business debts
3
Q
What is limited liability?
A
restricting the losses suffered by owners/shareholders to the sum they invested in the business
4
Q
What is unlimited liability?
A
treating the business and
the individual owner as inseparable, therefore
making the individual responsible for all the
debts of a failed business.
5
Q
What is a Private limited company (PLC)
A
a small family business
in which shareholders enjoy limited liability.
6
Q
A
