Liability
- Created by: Izzie
- Created on: 02-05-17 17:50
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- Liability
- Limited Liability
- An investors liability/financial commitment is limited to the total amount invested or promised in share cpital
- Investor's personal belongings beyond the venture are protected
- Private Limited Companies (Ltds) and Public Limited Companies (Plcs) have limited liability
- Unlimited Liability
- Seen as high risk
- Owners of businesses are responsible for the total amount of debt of the business
- Owner may lose personal belongings
- The term incorporated means the company & owners are separate entities in the eyes of the law = usually refers to Ltds
- Limited Liability
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