Liability

• Limited liability (Ltd & PLC) means that a business owner is only liable for their original investment should the business fall into debt
• Unlimited liability (sole trader & partnership) means that if a business has debts the owner must pay even if this means selling their own possessions to find the money. 
• Main type of finance for sole trader and partnerships 

  • Loan from a bank
  • Private investors e.g bank
  • Credit card 
  • Crowd funding 
  • Trade credit from suppliers
  • Owner's savings
  • Overdraft from the bank
• Ltd and PLC

  • Retained profits 
  • Sale of assets 
  • Government grants
  • Venture capital