Risk and Liability

• Risks

  are measurable
• Uncertainties

  not measurable
• Business decision making involve both risk and uncertainty
• Limited liability ?


  An investors/owners financial commitment is limited to the total amount invested or promised in share capital.

  • A persons finance and assests beyond this venture are protected
• Unlimited liability

  Owners of a business are responsible for the total amount of debt that incurs.

  -May lose personal belongings.