Qualification > Commerce
Stoopid Business Help!
SauD~:
Can anyone help me in business?
i just don't really understand the "limited liability"
The definition of Limited liability is:
In case of insolvency or loses, the amount of debt will not exceed the actual amount of investment in the business by the shareholder.
can anyone explain it to me? :-\ and Does the owners get the limited limitably advantages? how?
Thanks
elemis:
With regards to unlimited liability : If a business has debts that it cannot pay then its creditors by law can cease the firm's assets AND the owner's assets to pay off the debt.
In the case of LIMITED LIABILITY, the owner's liability to pay off any outstanding debts is limited to money invested into the business.
The creditors CANNOT cease the owner's personal assets.
SauD~:
--- Quote from: Ari Ben Canaan on March 08, 2011, 01:40:44 pm ---With regards to unlimited liability : If a business has debts that it cannot pay then its creditors by law can cease the firm's assets AND the owner's assets to pay off the debt.
In the case of LIMITED LIABILITY, the owner's liability to pay off any outstanding debts is limited to money invested into the business.
The creditors CANNOT cease the owner's personal assets.
--- End quote ---
Thanks :)
so they do have to pay later, right?
$tyli$h Executive:
^ As Ari said.
so they do have to pay later, right?
No. Whatever they have to pay cannot exceed the firm's assets.
SauD~:
--- Quote from: $tyli$h Executive on March 08, 2011, 02:12:33 pm ---^ As Ari said.
so they do have to pay later, right?
No. Whatever they have to pay cannot exceed the firm's assets.
--- End quote ---
hmm, the left amount will never be paid to suppliers?
even, if they made lots of profits ???
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