Business OCR Level 3 Unit 1 [Graded A+]

Unlimited liability - Answers]when the owners of a business are personally liable for all debts incurred by the business, if the business itself does not have the funds to repay them Limited Liability - Answers]when the owners of a business are liable for the debts incurred by the business only to the value of their investment in the business diseconomies of scale - Answers]when a business becomes too large the cost per unit may increase and the business may become more inefficient Business aims - Answers]a summary of what the business wants to achieve in the future Recession - Answers]a period of economic decline where demand and output fall Economies of scale - Answers]cost advantages gained when the size of a business increases, e.g. suppliers may offer discounts to those placing larger orders