0450.1.4.1.02 — Concepts of risk, ownership and limited liability: past paper questions
Real questions on 0450.1.4.1.02 — concepts of risk, ownership and limited liability
The newest 7 of 7 written questions. Open one to see it on the real paper.
- 0450/21 · October/November 2025 · Q1a[8]
Explain two advantages and two disadvantages of a business being a private limited company. Advantage 1: Advantage 2: Disadvantage 1: Disadvantage 2:
See it on the paper → - 0450/11 · October/November 2022 · Q2c[4]
Outline how having limited liability might benefit DNG’s shareholders.
See it on the paper → - 0450/12 · February/March 2021 · Q1a[2]
Define ‘limited liability’.
See it on the paper → - 0450/22 · October/November 2020 · Q2a[8]
two possible reasons why Aisha set up CC as a business partnership.
See it on the paper → - 0450/11 · May/June 2020 · Q4c[4]
Outline two disadvantages of BMT being a business partnership.
See it on the paper → - 0450/13 · October/November 2019 · Q1a[2]
What is meant by ‘limited liability’?
See it on the paper → - 0450/11 · May/June 2019 · Q4d[6]
one advantage and one disadvantage to FGH of becoming a public limited company.
See it on the paper →
What examiners said
This part (c) question was one of the most challenging for candidates. The strongest candidates explained how personal assets would be protected in the case of business failure for this electricity supplier. A common error was to state that the shareholders would not pay any debts. Such answers showed a lack of understanding that money invested into the business would be used to pay debts.
— Examiner report, October/November 2022, 0450/11 Q2(c) (Cambridge)
A well answered question. A common mistake was to confuse shareholders and the company. Other candidates simply stated that it involved having a separate legal identity, but this did not define the term.
— Examiner report, February/March 2021, 0450/12 Q1(a) (Cambridge)
The reasons for setting up a business as a partnership were well understood by the majority of candidates with the need for more capital, shared risk, shared responsibilities, new ideas and shared workload the most common answers. Better candidates gave two reasons why the partnership type of business organisation might be chosen and then explained why this was a benefit. Many candidates did apply...
— Examiner report, October/November 2020, 0450/22 Q2(a) (Cambridge)
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