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triumphanddisaster - ProFile 3 UNIT 2 Triumph and disaster...

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Photocopiable © Oxford University Press businesses. Credit control has to be carefully managed: some customers habitually stretch the credit terms. Some businesses avoid these problems by farming out billing and collection to factors : factors are specialist companies who collect the debts of other companies in return for a percentage. LIMITED LIABILITY In Britain, investors in businesses once had personal and unlimited liability for all a business’ debts. In Britain the 1855 Limited Liabilities Act allowed for a business to be considered independent of its investors, and solely responsible for its debts. Investors’ liability became limited to what they had invested in its shares. Hence, they became limited - writing Ltd after their name. Public companies, whose shares are traded on the open market, carry PLC – standing for Public Limited Company – after their names. Nowadays, most countries have adopted the concept of limited liability. Its development was an important innovation in the growth of
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