Business A-Level
limited liability
What limited liability means in Business A-Level, as defined for AQA.
Definition of limited liability
Check what you remember
Read the wording for your board, then hide it and explain limited liability in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Incorporating as a private limited company creates a separate legal entity, granting shareholders this, so they can only lose their investment.
Topics that use limited liability
- Understanding different business forms (AQA A-Level)
Related terms
- corporate objectives
- equity
- market expectations
- social enterprise
- capital gain
- dividend yield
- market capitalisation
- mission drift
Using limited liability in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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