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 a Category Category: A grouping

    Category: A grouping of related kinds of expenditures, like Personal Services, Reimbursements, Operating Expenses and Equipment, Special Items of Expense, Un-classified, Local Costs, Capital Costs, and inner Cost Recovery.

  • Q : What is Statute Statute: It is a

    Statute: It is a written law enacted by the Legislature and signed by the Governor or a vetoed bill overridden by a 2/3 vote of both houses), generally referred to by its chapter number and the year in which it is passed. The statutes which modify a s

  • Q : Define Subventions Subventions :

    Subventions: Typically employed to explain amounts of money expended as local assistance based on the formula, in contrast to grants which are provided selectively and frequently on a competitive basis. For the aim of Article XIII B, state subventions

  • Q : Frequency Distribution What is

    What is Frequency Distribution? Compare Categorical Frequency Distribution, Ungrouped Frequency Distribution, Grouped Frequency Distribution?

  • Q : Finance End of Chapter Problems Page

    End of Chapter Problems Page 150 5.2 The Audiology Department at Randall Clinic offers many services to the clinic’s patients. The three most common , along with cost and utilization data, are as follows: Service Variable cost per service Annual Direct Fixed cost Annual Number of Visits Basic

  • Q : Describe how firm search optimal level

    Describe how a firm find out the optimal level of current assets.
    The optimal level of working capital is finding out by determining the amount that balances the requirement for liquidity and for profitability.

  • Q : Three examples of mutually exclusive

    Provide three examples of mutually exclusive projects.
    Mutually exclusive projects are projects which compete against each other for our selection. If firm were considering the purchase of new computer, requiring only one computer, then the pro

2015 ©TutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.