Unlimited Liability Means

question 261

Multiple Choice

Unlimited liability means:

• A)When you own your own business you are responsible for all the business debts.
• B)You are only liable for the money you invest in the business.
• C)As a franchisee your franchisor is responsible for the debts of the franchise.
• D)You are liable for whatever advertising promises your firm makes.

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Definitions:

Yield

The return in terms of income from an investment, like dividends or interest earned by possessing a specific security.

Compound-interest

Interest computed on both the original sum invested or loaned, as well as on the interest that has been added to this principal amount over earlier periods.

GIC

A Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period.

Investment

The allocation of resources, such as time, money, or effort, in hope of generating a future benefit or profit.