Limited Liability - Unit 1 Flashcards
1
Q
What does unlimited liability mean?
A
Sole traders are legally responsible for any debts of the business. There is potential for the owner to lose his or her personal belongings to pay off any debts.
2
Q
What does limited liability mean?
A
He/she is not personally responsible for the businesses debts in the cooperation. The owners personal belongings are not liable.
3
Q
What’s a sole trader?
A
Businesses owned by one person
