--%>
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 : Equilibrium GDP for this hypothetical

    Normal 0 false false

  • Q : Are there security and soundness

    Are there security & soundness implications of mergers?No. All mergers needs regulatory approval and are subject to intense examination through regulators. If anything, the influence on safety and soundness is in general positive, as mergers

    		•
  • Q : Private closed economy based question

    Normal 0 false false

    		•
  • Q : Define General Fund General Fund (GF):

    General Fund (GF): For lawful basis accounting and budgeting aims, the predominant fund for the financing state government programs, employed to account for revenues that are not particularly designated to be accounted for by another fund. The main so

    		•
  • Q : How does preemptive right secure

    How does a preemptive right secure the interests of present stockholders? A preemptive right secure the interests of existing stockholders through giving them the chance to preempt other investors into the purchase of new shares. If these right

    		•
  • Q : State time dimensions State time

    State time dimensions of the income statement, the balance sheet, and the statement of cash flows?  Describe. The income statement is such as a video: This measures a firm's profitability on a period of time (that can be a week, a

    		•
  • Q : What is Expenditure Authority

    Expenditure Authority: The authorization to make expenditure (generally by a budget act appropriation, provisional language or some other legislation).

    		•
  • Q : Translate enterprise value in net

    Describe the adjustments essential to translate enterprise value to the net present value of common equity.To get the value of the company's common stock, add up the value of the firm's present assets to the enterprise value (this generates the

    		•
  • Q : Correlate each to the New Economy

    Normal 0 false false

  • Q : Advantages of corporation in countries

    Describe some primary advantages while a corporation has operations in countries other than its home country? Explain risks? Foreign operations may decrease a company's labour or material costs, and may raise its sales. Risks comprise possible

    		•