Unlimited Liability: GCSE Business Definition

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Published

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1 minutes

What is unlimited liability?

In GCSE Business, unlimited liability is defined as the legal responsibility of sole traders and business partners for all debts incurred by their business.

Sole traders and partners are not considered to be separate legal entities from the business they own. This means they are personally responsible for any and all of its debts. If their business runs into financial difficulties, they may need to use their own assets to pay these debts. This could mean a small business owner loses their savings or even their home if debts are significant.

Unlimited Liability Revision Resources to Ace Your Exams

Save My Exams has a great range of resources to explore the topic of unlimited liability further. 

Read our GCSE Business liability revision notes or test your knowledge of business ownership, including unlimited liability, with our exam questions to improve your grades.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.

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