Business Finance Concepts

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Peer-to-peer

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Peer-to-peer refers to a decentralized network where two individuals interact directly without intermediaries.

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Assets for finance

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A business might sell assets such as machinery, property, or inventory to raise finance.

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Definition of Unlimited Liability

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Unlimited liability means that if a business has debts, the owner must pay even if this means selling their own possessions to find the money.

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Legal entity in unlimited liability

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The business and the owner are considered one legal entity, making them equally responsible for debts.

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Responsibility for debts

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In unlimited liability, both the business and the owner are equally liable for any debts incurred.

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Partnership implications

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In a partnership, partners may need to sell personal assets to pay off business debts.

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Unlimited liability definition

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Unlimited liability refers to the owner's full responsibility for business debts, extending to personal assets.

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Unlimited liability in partnerships

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Partnerships with unlimited liability require partners to be responsible for business debts with personal assets.

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Two forms of limited liability businesses

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Private limited company (Ltd) and Public limited company (PLC).

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Characteristics of a Public limited company

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Shares are traded publicly; limited liability for owners.