How does the concept of limited liability impact business

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Reference no: EM13766923

1. According to the concept of limited liability, the liability of shareholders of a company is restricted to the face value of shares. They have no personal obligation for the liabilities of the company.
Consider the concept of limited liability and respond to the following:
•How does the concept of limited liability impact business decisions?

2. Companies sometimes issue shares for consideration other than cash. They should record their stock at fair market value of the items they get in exchange of stock.

Consider the issue of stock other than cash and respond to the following:
•What ethical challenges can a company face while issuing stock other than cash?

Reference no: EM13766923

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