Question

Why there is unlimited liability for the sole proprietorship and limited liability for the joint stock company?

Answer 1

Explanation:

Unlimited liability refers to the legal obligations general partners and sole proprietors because they are liable for all business debts if the business can't pay its liabilities.

Answer 2

Sole proprietorship and joint-stock company.

Explanation:

• Sole Proprietorship is the business which is based and run by a single person.
• It is more like a private firm or business.
• Joint Stock Company is the business which consist of many channels and people.
• The decision for the business is taken by the committee.
• There are more liabilities for the Sole Proprietorship because of the business and the Proprietorship they are the same.
• In the Joint-stock company the business and the Proprietorship are different so they have fewer chances of liability as decisions were taken by different members.

Learn more about the Sole proprietorship and joint-stock company.

Differences between sole proprietorship and joint stock company

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