Description
The assignment's requirements are in the attachment below. Follow the instruction in the file below and let me know if you want further explanation. Please use basic English vocabulary.
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Explanation & Answer
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Question 1:
Limited liability is a business structure where investors of a company are only liable to the total
amount of money initially invested. When a limited liability business is registered, the owners will
be responsible for specific shares that a business owner is holding. It is the case in corporations as
owners are the shareholders. In case there is a bankruptcy for the business the owners will only
lose their contribution. In an unlimited liability business, the liability is not limited to their
investment. These investments have higher risk with higher rate of return. There is a legal
obligation of the owners to payback the company debts with whatever resources they own.
Partnership consists of 2 or more owners in the business. Hence, partnerships can be a small
business or big firms with multiple partners. These partners will be sharing the loss or the profit
and their resources. They can be as general partnership, limited or limited liability partnerships.
Basic difference is the varying amount of personal liability or management control. Some of the
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