Compare and contrast the potential liability, Financial Management

Assignment Help:

Compare and contrast the potential liability of owners of proprietorships, partnerships (general partners), and corporations.

The sole proprietor has limitless liability for matters relating to the business.  The meaning of this is that the sole proprietor is accountable for all the obligations of the business, although if those obligations exceed the amount the proprietor has invested in the business.

Every partner in a partnership is generally liable for the activities of the partnership as a whole.  Even if there are a hundred partners, everyone is technically accountable for all the debts of the partnership.  If 99 partners declare personal bankruptcy, the hundredth partner still is accountable for all the partnership's debts.

A corporation is a legal entity which is liable for its own activities.Stockholders, the corporation's owners, comprise limited liability for the corporation's activities.  They cannot lose much more than the amount they paid to buy the corporation's stock.


Related Discussions:- Compare and contrast the potential liability

What is a hedge fund, Q.What is a Hedge Fund? A Hedge Fund is a fund es...

Q.What is a Hedge Fund? A Hedge Fund is a fund established by one or else several partners with net worth of at least $1 million (although this maybe falling). It uses long as

Factors considered in assigning a credit rating, Credit rating agenci...

Credit rating agencies carry out credit rating. Companies appoint these agencies to assign credit rating for their corporate issues. The rating agencies may condu

Indirect-cost pools, 1. Increasing the number of indirect-cost pools is gua...

1. Increasing the number of indirect-cost pools is guaranteed to sizably increase the accuracy of product or service costs.do you agree? Support your anser using examples 2. The

Explain about shareholders equity, Does the shareholders' equity represent ...

Does the shareholders' equity represent the savings a company has accumulated through the years? No. The number which shows in the Shareholder's Equity of a company that was fo

Define the basic motivations for a counterparty, Define the basic motivatio...

Define the basic motivations for a counterparty to enter into a currency swap.  Answer:  One major reason for a counterparty to enter into a currency swap is to exploit the comp

Validity of the accounting implications, Question: In each case below a...

Question: In each case below and having regard to your knowledge of Accounting Concepts, comment on and assess the validity of the accounting implications/practices to be adop

Quantitative or mixed-methods study, Application: Critiquing a Qualitative,...

Application: Critiquing a Qualitative, Quantitative, or Mixed-Methods Study Over the last several weeks you have explored many qualitative, quantitative, and mixed-methods rese

Financial accounting, Financial accounting: Financial accounting attemp...

Financial accounting: Financial accounting attempts to establish the value of a particular organisation at a specific point in time, and its earnings over a specified period of

Explain cross hedging, Explain cross-hedging and discuss the factors determ...

Explain cross-hedging and discuss the factors determining its effectiveness. Answer: Cross-hedging includes hedging a position in one asset by taking a position in another asse

Explain about the internal controls of benchmarking, Explain about the Inte...

Explain about the Internal controls of benchmarking   "Comprises control environment and control procedures. It includes all the procedures (internal contr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd