Notes
Chapter 2
Content of the notes (3)
Page 1
Page 2
Page 3
Businesses with unlimited liability
Unlimited liability- finances of the business are treated as inseparable from the finance of the business owners(s)
Sole Traders- individual who owns and operates his or her own business. the owner has unlimited liability meaning personal assets can be seized by creditors to meet outstanding debts
Businesses with limited liability
Limited liability- the legal duty to pay debts run up by a business stays with the business itself.