JAMB - Commerce (2025 - No. 28)
Unlimited liability in business implies that the
risk of the owner is limited only to the amount invested
property of the owners should not be used to secure loans
owners private property can be used to settle the business debts
debts are paid with subventions
Explanation
Unlimited liability implies that the owner's private property can be used to settle the business debts. In a business with unlimited
liability, the owner is personally responsible for all the business's debts, which means their personal assets can be used to pay off
the business's debts if the business itself doesn't have enough assets to cover them.
liability, the owner is personally responsible for all the business's debts, which means their personal assets can be used to pay off
the business's debts if the business itself doesn't have enough assets to cover them.
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