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:

Useful Life

The estimated duration that an asset is expected to be functional and economically feasible for use in operations, affecting depreciation calculations.

Outdated

Refers to information, technology, or methods that are no longer current, useful, or in use.

Straight-Line Method

A method of calculating depreciation or amortization by evenly spreading the cost over an asset's useful life.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in the asset's value over time.