Business Studies, asked by rr5744068, 7 months ago

Explain the term limited liability with reference to Company​

Answers

Answered by thnvml
2

Explanation:

Limited liability is a type of legal structure for an organization where a corporate loss will not exceed the amount invested in a partnership or limited liability company (LLC). In other words, investors' and owners' private assets are not at risk if the company fails. In Germany, it's known as Gesellschaft mit beschränkter Haftung (GmbH).

The limited liability feature is one of the biggest advantages of investing in publicly listed companies. While a shareholder can participate wholly in the growth of a company, their liability is restricted to the amount of the investment in the company, even if it subsequently goes bankrupt and has remaining debt obligations.

Answered by vaishuhima6826275
2

Answer:

A limited liability company is a business structure for private companies in the United states one that combines aspects of partner ships and corporations

Limited liability companies benefit from the flexibility and flow through taxation of partner ships and sole proprietorships while maintaining the limited liability status of the corporation

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