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What does limited and unlimited liability mean?

What does limited liability mean?

  • doing Gcse business and what does limited liability mean in basic tems? Is it the owner is responsible for there depts

  • Answer:

    Limited liability means that the owners (cause it has to be more than one individual) is not responsibile for the debts of the organisation, but rather they are only responsible for the capital they put into it in the beginning, or anytime during the operation of the company. This basically means that if the organisation goes bankrupt, they basically lose the investments they already made into the organisation, but are not liable for to pay debts that are unsatisfied. Hope I was of some help

jojo at Yahoo! Answers Visit the source

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You have to read the form, to see exactly what it means. The liability, is LIMITED. There's still some, but it's not FULL. It's going to vary wildly by state, and form.

mbrcatz

ltd liab - for corpn refer to creditors/vendors can sue the corpn, at most the corpn go bust, all the shareholders' shares probably will worthless but their personal assets are not touchable by creditors/vendors.

AK

took me two seconds to google this: http://en.wikipedia.org/wiki/Limited_liability

MelsRedMazda3

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