Limited And Unlimitd Liability + Business Plan

Question 1

Unlimited liability

Answer 1

Owners liable for all business debts

Question 2

Limited liability

Answer 2

Shareholders can only loose the amount they invested if business fails

Question 3

Factors to choose appropriate finance

Answer 3

. Short-term or long-term
. Financial position of business
. Type of expenditure for which money is needed
. Costs
. Legal status of business

Question 4

Finance appropriate for unlimited liability businesses

Answer 4

. Personal savings
. Retained profit
. Mortgage
. Unsecured bank loans
. Peer-to-peer lending
. Crowdfunding
. Bank overdraft
. Grants

Question 5

Finance appropriate for limited liability businesses

Answer 5

. Share capital
. Debentures
. Retained profit
. Venture capitalists
. Business angels
. Other sources

Question 6

The contents of business plan

Answer 6

. An executive summary
. Business opportunity
. Buying and production
. Financial forecasts
. Business and objectives
. The market
. Personnel
. Premises and equipment
. Finance