Limited and Unlimited Liability (Grade 12 NSC Matric Business Studies): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What does liability mean in business?
What does liability mean in business?
Responsibility for paying business debts
What does limited liability mean for a business owner?
What does limited liability mean for a business owner?
Losses restricted to amount invested
What is the main risk of unlimited liability?
What is the main risk of unlimited liability?
Personal assets can be seized for debts
Which business forms typically have limited liability?
Which business forms typically have limited liability?
Companies and corporations
Which business forms usually have unlimited liability?
Which business forms usually have unlimited liability?
Sole proprietorships and partnerships
What are protected under limited liability?
What are protected under limited liability?
Personal assets like home, car, savings
Why do companies have limited liability?
Why do companies have limited liability?
They have separate legal personality
Sarah's sole proprietorship owes R100,000 but only has R50,000 invested. What must she pay?
Sarah's sole proprietorship owes R100,000 but only has R50,000 invested. What must she pay?
R100,000 from personal assets
Sarah's private company owes R100,000 but she invested R50,000. How much can she lose?
Sarah's private company owes R100,000 but she invested R50,000. How much can she lose?
Only R50,000 invested
When is limited liability most suitable?
When is limited liability most suitable?
For high-risk businesses