Liability — definition?
Owners' liability for debts is limited or unlimited.
Unlimited liability — effect?
Owners' personal assets are at risk.
Limited liability company — taxes?
Taxed separately from owners.
Sole trader — liability?
Unlimited liability, responsible for all debts.
Partnership — key feature?
Multiple owners sharing profits and responsibilities.
Limited liability partnership — legal?
Has a separate legal entity.
Private limited company — share trading?
Shares traded privately, often among family.
Public limited company — shares?
Shares bought and sold on stock exchange.
Not-for-profit — profit distribution?
Profits are reinvested, not distributed.
Public sector — primary role?
Provides public services funded by taxes.
Ownership vs management — PLC?
Shareholders own, directors manage.
Liability types — impact?
Limited caps risk; unlimited exposes personal assets.
Answer 12 questions on Understanding Business Structures and Liability.
1. What is the main effect of limited liability on a business owner’s financial risk?
2. Which statement best describes unlimited liability in business ownership?
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