Forms of Ownership: Criteria for Success and/or Failure (Grade 12 NSC Matric Business Studies): Flashcards
📚Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
Liability in business
Liability in business
Responsibility for paying business debts
Limited liability
Limited liability
Personal losses restricted to amount invested in business
Unlimited liability
Unlimited liability
Creditors can claim personal assets to settle business debts
Personal assets with limited liability
Personal assets with limited liability
Protected from business creditors
Personal assets with unlimited liability
Personal assets with unlimited liability
Can be seized to pay business debts
Business forms with limited liability
Business forms with limited liability
Companies, corporations, close corporations
Business forms with unlimited liability
Business forms with unlimited liability
Sole proprietorships and partnerships
Why companies have limited liability
Why companies have limited liability
They have separate legal personality from owners
Financial risk with limited liability
Financial risk with limited liability
Lower personal financial risk
Financial risk with unlimited liability
Financial risk with unlimited liability
Higher personal financial risk