Question

Mention Five similarities between the two types of limited liability company State Five differences between the two types

Answer 1

Answer:

Limited liability means that the liability of the owners or investors of a company is limited to the total amount of money which they have invested in the business. When the firm is registered as a limited liability firm, the owners of the company will be safe in the event the company goes bankrupt. To elaborate on this idea, ‘limited liability’ will imply that the owner’s losses are only limited to the proportion of their specific share and he or she cannot be made responsible for the losses that are beyond the share of their contribution. We can say ‘Corporation’ is the most popular kind of limited liability company.