2.1.3 LIABILITY

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Created by
Avantika Gurung

Cards (3)

  • Liability
    An obligation to pay another person/lender/supplier
  • Limited liability 

    • The obligation of a shareholder for the debts of a business is limited to the value of their investment
    • the most a shareholder/investor can lose (1) of the original amount they invested in the business
  • Unlimited liability

    The obligation of a business owner to cover all the debts of the business