Economics B A-Level

Limited liability

What Limited liability means in Economics B A-Level, as defined for Pearson Edexcel.

Definition of Limited liability

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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: Pearson Edexcel

The business has a separate legal identity, so shareholders are only liable for the amount invested in their shares, protecting personal wealth.

Pearson Edexcel · Risk and liability (study guide)

Topics that use Limited liability

Risk and liability (Pearson Edexcel A-Level)

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Using Limited liability in the exam

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