Liability (Edexcel A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is another term for unlimited liability businesses?
What is another term for unlimited liability businesses?
Unincorporated businesses
Which two types of business have limited liability?
Which two types of business have limited liability?
Private Ltd and Public PLC
What is the maximum amount a shareholder can lose in a limited company?
What is the maximum amount a shareholder can lose in a limited company?
The amount they invested in shares
What can unlimited liability business owners be forced to sell to pay debts?
What can unlimited liability business owners be forced to sell to pay debts?
Their house and personal possessions
Which situation can remove limited liability protection?
Which situation can remove limited liability protection?
The company fails to file annual reports
How long is long-term finance typically needed for?
How long is long-term finance typically needed for?
Ten years or more
Which is an example of short-term finance?
Which is an example of short-term finance?
Bank overdrafts
What type of finance should be used for capital expenditure?
What type of finance should be used for capital expenditure?
Long-term finance
What is a key characteristic of share capital?
What is a key characteristic of share capital?
It is permanent and never repaid
Why might unlimited liability businesses find it easier to raise small amounts of finance?
Why might unlimited liability businesses find it easier to raise small amounts of finance?
Lenders can claim against personal assets