ENTREPRENEURSHIP AND THE GLOBAL ECONOMY
GLOBALIZATION AND ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A business owner with unlimited liability
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could have to sacrifice personal money and possessions to pay business debt
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is not personally responsible for the debts of the business
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is a shareholder of a corporation
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would not have to sacrifice personal money and possessions to pay business debt
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Explanation:
Detailed explanation-1: -Unlimited liability is when one or more business owners or partners are liable for their company’s debts and tax compliance. It is very different to a limited liability company (LLC), whose business structure is designed specifically to insulate individual partners or stakeholders from risk.
Detailed explanation-2: -General partners have unlimited liability and have full management control of the business. Limited partners have little to no involvement in management, but also have liability that’s limited to their investment amount in the LP.
Detailed explanation-3: -Sole proprietorship and partnership have unlimited liability but a company has limited liability.
There is 1 question to complete.