ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A limited liability company (LLC) is a hybrid business form that combines the legal liability protection of a corporation with the operational flexibility of a partnership or sole proprietorship.

Detailed explanation-2: -Limited Liability Company (LLC) An LLC is a hybrid between a partnership and a corporation. Members of an LLC have operational flexibility and income benefits similar to a partnership but also have limited liability exposure.

Detailed explanation-3: -One of the main disadvantages of sole proprietorships is that they do not have any government protection, as they are not registered. This means that all liabilities extend from the business to the owner.

Detailed explanation-4: -There are three basic forms of business ownership: sole proprietorship, partnership and corporation. Each of these forms of business organization has advantages and disadvantages in such areas as setting up the company, paying taxes and assessing liability for business debts.

Detailed explanation-5: -Limited liability partnerships are similar to limited partnerships, but give limited liability to every owner. An LLP protects each partner from debts against the partnership, they won’t be responsible for the actions of other partners.