ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Business debt is the responsibility of the owners
|
|
|
Business debt is separate from the owners personal debt/finances
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -In a limited liability structure, owners’ personal capital or assets of the owners cannot be claimed for paying business debts. Rather, a partner’s liability is restricted to the. read moreamount invested in the business.
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: -While limited liability separates and protects personal assets from business assets, unlimited liability means that the shareholder or partner assumes all liability for the company’s success. If the company becomes insolvent, the unlimited liability partner would be responsible for repaying all debts to creditors.