Q23
Distinguish between limited liability and unlimited liability. Give ONE example of a business structure which has limited liability. Give ONE example of a business structure which has unlimited liability. [3 Marks]
Expert Answer
The main distinguishing factor between limited liability and unlimited liability is the responsibility of company’s debt. In the sole proprietorship and general partnership firms, the owners are completely liable in other terms, they are of unlimited liability for the companies debt. Where is case of organized private companies, limited liabilities companies which are registered according to the jurisdiction. It is a corporation structure, where the members
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