MANAGEMENT

Detailed explanation-1: -Legal heirs are solely accountable to the degree that they receive any assets from the borrower. For example, if a legal heir inherits property worth Rs 1 lakh, the legal heir will only be liable to the deceased’s lender for that amount, not more.

Detailed explanation-2: -Debt liability means any form of monetary obligation other than an ownership interest. It includes bonds, debentures, notes, mortgages and loans of any kind, secured or unsecured. In answering the questions that follow, you may omit ACCOUNTS PAYABLE for goods or services received in the course of business.

Detailed explanation-3: -Insolvency is a state of financial distress in which a business or person is unable to pay their bills. It can lead to insolvency proceedings, in which legal action will be taken against the insolvent person or entity, and assets may be liquidated to pay off outstanding debts.

Detailed explanation-4: -You are personally liable for business debts if you structure as a sole proprietorship, general partnership, or limited partnership. If your business falls under the sole proprietorship structure, you and your business are legally the same.