1.4 MAKING THE BUSINESS EFFECTIVE

liability

• limited liability is when an entrepreneur's risk is limited to the amount they have invested or promised to invest.
• this means that personal assests cannot be used to pay the business's debt
• unlimited liabilty is when the entrpeneur's risk includes their own personal ssets.
• which means if the debt cannot be covered by the business's assets

types of business ownership for start up 

• sole trader is a type of unicorporated business that is owned by just one person. 
• partnership is a business that is owned by a group of two or…