WAEC - Commerce (2010 - No. 30)
Unlimited liability in business implies that the
risk of the owner is limited only to the amount invested
debts are paid with subventions
property of the owners should not be used to secure loans
owners private property can be used to settle the business debts
Explication
Unlimited liability means you are exposed to potential losses based on company obligations. In the event of liquidation the personal property of its owner is used to settle the business debt