--%>
Assignment Help - homework help

Compare and contrast the potential liability of owners

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

The sole proprietor has limitless liability for matters relating to the business. It means that the sole proprietor is responsible for every obligations of the business, even if those obligations exceed the overall proprietor has invested in the business.

Each of the partners in a partnership is generally liable for the activities of the partnership as a whole. Even if there are hundred partners, technically each one is responsible for all the debts of the partnership. If ninety-nine partners state personal bankruptcy, still the hundredth partner is responsible for every partnership's debts.

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

   Related Questions in Finance Basics

  • Q : What is Fed prime goal in setting

    Normal 0 false false

  • Q : Finance associated to the fields of

    How is finance associated to the fields of economics and accounting?

    		•
  • Q : Why banks make short-term or

    Banks desire to make short-term, self-liquidating loans to businesses. Why? Banks desire to be able to illustrate where the funds are likely to come from such that the borrower is capable to employ to make the req

    		•
  • Q : Describe factors cause change in

    Normal 0 false false

    		•
  • Q : What is Minor Capital Outlay Minor

    Minor Capital Outlay: The construction projects or tools needed to finish a construction project, estimated to cost less than $600,000 bonus any escalation per Public Contract Code 10108.

    		•
  • Q : Describe Section 28.00 Section 28.00 :

    Section 28.00: It is a Control Section of Budget Act which authorizes the Director of Finance to support the augmentation or diminution of items of expenditure for the receipt of un-anticipated federal funds or other non-state funds, and which identif

    		•
  • Q : Explain Statewide Cost Allocation Plan

    Statewide Cost Allocation Plan (SWCAP): It is the amount of state administrative, General Fund costs (example, amounts expended by the central service departments like the State Personnel Board, State Treasurer’s Office, State C

    		•
  • Q : What is Debt Financing Debt Financing :

    Debt Financing: Whenever a firm raises money for the working capital or capital expenses by selling bonds, bills, or notes to individual and or institutional investors. In return for lending money, the individuals or institutions become creditors and

    		•
  • Q : Describe the financial leverage effect

    Describe the financial leverage effect and what causes it? Explain the potential benefits and negative consequences of high financial leverage? Financial leverage is the additional volatility of overall income caused through the presence of fix

    		•
  • Q : Describe Treasury bill Describe

    Describe Treasury bill? How risky is it?Treasury bills are short term debt instruments issued through the U.S. Treasury which are sold at a discount and pay face value at maturity.  They are very close to risk-free as they are backed throug

    		•