Business GCSE
Limited Liability
What Limited Liability means in Business GCSE, as defined for OCR.
Definitions of Limited Liability
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
The legal protection where owners/shareholders only risk losing the amount they invested in the business, not their personal assets.
The legal protection where owners only lose the amount they invested if the business fails; personal assets are safe.
Topics that use Limited Liability
- Business activity (OCR GCSE)
- Business ownership (OCR GCSE)
Related terms
- Adding Value
- Entrepreneur
- Stakeholder
- Dividends
- Incorporation
- Initial Public Offering (IPO)
- Organic Growth
- Partnership
Using Limited Liability in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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