Edexcel-Liability 2.1

Question 1

Limited liability

Answer 1

Can only loose amount invested into business.
Only loose shares

Question 2

Unlimited liability

Answer 2

Fully responsible for all debts owed
Own personal assets used for debts

Question 3

Unlimited liability sources of finance

Answer 3

Leasing
Retained profits
Overdraft

Question 4

Limited liability sources of finance

Answer 4

Debentures
share capital
Business angels

Question 5

Limited liability businesses

Answer 5

Public limited
Private limited
Franchises

Question 6

Unlimited liability businesses

Answer 6

sole traders
partnerships

Question 7

Factors which affect choice of finance

Answer 7

Why is finance needed?
For how long?
How much will it cost?