ROCE

Return On Capital Employed

(100*Net profit)/Capital

Net Profit = 50 thousand

Capital Profit = 29 thousand

(100*50)/29 = 172.4%

Net profit is expressed as a percentage of Capital Employed

Limited and Unlimited Liability

Sole Traders and Partnerships have unlimited liability:

• Endangers personal assets
• Owners may have to sell of houses or cars to pay any debts

Limited companies have limited liability:

• Can only go into debt as much as they invested into the company
• Less of a risk than unlimited liabilty