Limited Liability Meaning

The phrase limited liability is used in the context of partnership and company, when 2 or more person decide to do business in partnership than one of the partner may decide to have only limited liability, similarly when a company is listed on stock exchanges the shareholders of the company also have limited liability to the extent of number of shares held by them.

It means that in the event of bankruptcy the creditors of the company cannot compel the partner or shareholder to liquidate their personal assets, creditors can only liquidate company’s assets.

0 comments… add one

Leave a Comment

Related pages

advantages and disadvantages of planned economywithdrawal slip in bankdiscounting billsadvantages of authoritarian leadershipexamples monopolistic competition companiescapitalist socialist and mixed economyexplain debenturesimplicit and explicit cost in economicsfull form of ipoa horizontal mergerconsignee name meaningwhat is a trade discount in accountingautocratic dictatorreverse stock split advantagescontingent liabilities exampleexample of perfect competition in the philippinesventure capital disadvantagesplr rate of sbidisadvantages of brandingtraditional economics definitionperpetual succession meaningdisadvantages of delegationdisadvantages of global tradeadvantages and disadvantages of centralisation and decentralisationdefinition of durable goodpredetermine definitionplanned economies examplesdisadvantages of job costingwhat is market skimming pricing strategywhat is monopolistic competition market structurecrossing of chequesskimming the marketskimming strategy definitionregional rural banks functionsautocratic managersocialist economy vs capitalist economyadvantages and disadvantages of diversificationwhat are horizontal mergersdisadvantage of globalizationmerits and demerits of socialist economywhat is the difference between cumulative and noncumulative preferred stockdifference between factoring and discountingfounder of icici bankcharacteristics of an authoritarian leaderautocratic advantagesadvantage and disadvantage of traditional economydifference between systematic risk and unsystematic riskautocratic leaderwhat are the drawbacks of democracydistinguish between socialism and capitalismwhat is operating cycle in accountingdisadvantages of marginal costingadvantages of specialisation economicsdurable and nondurable goodsmarket based pricing advantages and disadvantagesdefine market penetration pricingimplicit vs explicit costadvantages and disadvantages of capitalist economyadvantages of payback period methoddrawer & draweesocial media merits and demeritsdisadvantages of centrally planned economydefine securitizationtransfer pricing advantages and disadvantagesauthorized vs issued sharesdisadvantages of industries wikipediaadvantages and disadvantages of free market economieswhat is durable and nondurable goodsvertical takeoverwhat is capm in financial managementdiminishing balance method depreciation calculationbenefits of swot analysiswhat is the full form of asbacash in flowdiff between micro and macro economicswhat are vertical mergersmixed economy in nigeria