Compare and contrast the potential liability, Financial Management

Assignment Help:

Compare and contrast the potential liability of owners of proprietorships, partnerships (general partners), and corporations.

The sole proprietor has limitless liability for matters relating to the business.  The meaning of this is that the sole proprietor is accountable for all the obligations of the business, although if those obligations exceed the amount the proprietor has invested in the business.

Every partner in a partnership is generally liable for the activities of the partnership as a whole.  Even if there are a hundred partners, everyone is technically accountable for all the debts of the partnership.  If 99 partners declare personal bankruptcy, the hundredth partner still is accountable for all the partnership's debts.

A corporation is a legal entity which is liable for its own activities.Stockholders, the corporation's owners, comprise limited liability for the corporation's activities.  They cannot lose much more than the amount they paid to buy the corporation's stock.


Related Discussions:- Compare and contrast the potential liability

Cost of capital , ABC Ltd. Produces electronic components with a selling pr...

ABC Ltd. Produces electronic components with a selling price per of Rs.100. Fixed cost amount to Rs.2,00,000/- 5000 units are produced and sold each year. Annua

6 KEY STAGES OF INVESTMENT DECISION WITH APPROPRIATE DIAGRAM, 6 KEY STAGES ...

6 KEY STAGES OF INVESTMENT DECISION WITH APPROPRIATE DIAGRAM

Capm model and financial leverage beta , 1. Capital Asset Pricing Model an...

1. Capital Asset Pricing Model and Multinational Corporations Why do some critics say the CAPM model is not appropriate in an international setting? Please explain a way that

Clearing and settlement - t- bills, Clearing and Settlement The Treasur...

Clearing and Settlement The Treasury Bills are available in physical form if an investor desires so. The market is mostly dominated by institutional players who have a facility

What are the primary reasons that companies hold cash, What are the primary...

What are the primary reasons that companies hold cash? Companies hold cash to do necessary payments to take advantage of opportunities as they arise and to cover unforeseen eme

Electronic communications networks, Electronic Communications Networks: ...

Electronic Communications Networks: In traditional stock exchanges, the buying and selling of stocks take place at a physical location only and the members have to conduct tradi

Future value of an annuity, Will you please give the defination of "Future ...

Will you please give the defination of "Future Value Of An Annuity"?

What are the ifrs 8 operating segments, What are the IFRS 8 operating segme...

What are the IFRS 8 operating segments IASB issued IFRS 8 operating segments in November 2006 (which replaced IAS 14). This continues IASB's work in its joint short-term conver

Swap-linked notes, Swap-Linked Notes: Interest rate swaps are derivativ...

Swap-Linked Notes: Interest rate swaps are derivative products which help in transforming the cash flows of existing debt issues. These are not only useful in covering the exis

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd