In Terms of Business Ownership, What Is Meant by Unlimited

question 8

Multiple Choice

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

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Definitions:

Directive Leader

A leader who provides clear expectations and specific directions to their followers.

Groupthink

A phenomenon where the desire for harmony or conformity in a decision-making group leads to an irrational or dysfunctional outcome.

Directive Group Leader

A leader in a group setting who guides, structures, and directs the group's activities and discussions.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.