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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provides unlimited liability to its members
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provides limited liability to its members
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is set up to make profits of its investors
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is set up to pay dividends to its shareholders
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Detailed explanation-1: -Nonprofit corporations protect your directors and members from personal liability from any financial debts and legal liability of the nonprofit. This is called limited liability.
Detailed explanation-2: -A nonprofit can be held responsible for its own actions and omissions (direct liability).
Detailed explanation-3: -A Limited liability company (LLC) is a business structure that offers limited liability protection and pass-through taxation. As with corporations, the LLC legally exists as a separate entity from its owners. Therefore, owners cannot typically be held personally responsible for the business debts and liabilities.
Detailed explanation-4: -Limited liability means that the assets and debts of the business remain separate from the personal assets and debts of the company’s owners. If a company goes bankrupt, creditors cannot therefore go after the owners’ personal assets, just that of the business.
Detailed explanation-5: -A limited liability company (LLC) is a business entity that prevents individuals from being liable for the company’s financial losses and debt liabilities. In the event of legal action or business failure, liability is assumed by the company rather than its constituent partners or shareholders.