In terms of business ownership, what is meant by unlimited liability?
A) there is no limit on the amount an owner can borrow
B) the business can borrow money for any type of purchase
C) the owner is responsible for all business debts and legal liabilities
D) shareholders can borrow money from the business

Question

Quizplus · Accepted Answer

Unlimited liability means that the owner of a business is personally responsible for all the debts and legal liabilities of the business, which means that there is no limit to the amount that the owner may have to pay out of their own pocket to cover these expenses. This is in contrast to limited liability, where the owners' personal assets are protected from the debts of the business.

In Terms of Business Ownership, What Is Meant by Unlimited