BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The largest benefit is the company’s limited liability status. The company exists as its own legal entity. This protects members and owners from being held personally liable for the operations and debts of the business.

Detailed explanation-2: -Are Shareholders Personally Liable for the Debts of a Company? Shareholder only have ‘limited liability’ for the debts of the company. That means they are only responsible for company debts up to the value of any shares, (assuming no personal guarantees have been signed).

Detailed explanation-3: -Limited liability is important for companies, as it helps them raise money. With limited liability, investors only risk losing the money they have invested in shares. As a result, shareholders are more likely to invest in a company if they know they will not lose their personal assets.

Detailed explanation-4: -Limited liability is a form of legal protection for shareholders and owners that prevents individuals from being held personally responsible for their company’s debts or financial losses.

Detailed explanation-5: -Concept of “limited liability partnership" It is capable of entering into contracts and holding property in its own name. • The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.