1
Q
what is unlimited liability?
A
means that the business owners are personally liable for any loss that a business makes
2
Q
which type of business has unlimited liability?
A
unincorporated businesses e.g sole traders, partnerships
3
Q
what is limited liability?
A
is where the liability of a company is detached from the company. shareholders can loose their investment, but their personal belongings are safe
4
Q
which type of business has limited liability?
A
- private limited companies
- public limited companies
- incorporated businesses
5
Q
what funding is appropriate for sole traders and partnerships with unlimited liability?
A
- owners capital/ personal savings
- retained profit
- loans
- grants
6
Q
what funding is appropriate for private/ public companies with limited liability?
A
- share capital
- retained profit
- bank loans
- business angels
- venture capital
A level business theme 2
flashcards
Decks in class (20)
# Cards
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2.1.1 internal finance9
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2.1.2 external finance (methods of finance)12
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2.1.2 external finance (sources of finance)10
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2.1.3 liability6
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2.1.4 business plan4
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2.1.4 cash flow11
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2.2.1 sales forecasting7
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2.2.2 sales, revenue and costs13
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2.2.3 break even14
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2.2.4 budgets9
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2.3.1 profit18
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2.3.2 liquidity16
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2.3.3 business failure5
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2.4.1 production, productivity and efficiency30
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2.4.2 capacity utilisation9
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2.4.3 stock control19
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2.5.1 economic environment33
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2.5.2 legislation11
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2.5.3 the competitive environment4
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2.4.4 quality18
