Liability

• Limited- PLC, LTD

  • Owners and business different legal entities so not responsible for debt
  • shareholders personal assets aren’t at risk if business incurs debts
  • e.g invest 10,000 max they can loose is 10,000
  • Pro for these business types
• Unlimited- sole trader, partnership

  • Owner and business is same legal entity
  • owner responsible for all debts of incurred
  • e.g business fails with 200,000 debt the owners assets car/house are at risk