2.1.3 Liability Quiz

What is meant by Unlimited Liability?

What type of businesses have Unlimited Liability?

What is meant by Limited Liability?

Which of the following are appropriate finance options for Unlimited Liability companies:

• Owners Capital

• Bank Finance

• Leasing

• Share capital

Which of the following are appropriate finance options for Limited Liability companies:

• Share Capital

• Bank Finance

• Venture Capital

• Crowdfunding

Briefly explain the following statement: A small supplier may be more willing to offer trade credit to a business with unlimited liability.

Briefly explain the following statement: Despite limited liability a bank may be more willing to offer a loan to a private limited business