Answer:
- **Unlimited Company:**
- Owners have unlimited personal liability for the company's debts.
- No limit on the liability of shareholders.
- Typically small businesses or partnerships.
- Not as common due to higher risk for owners.
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- **Limited Company:**
- Shareholders have limited liability, protecting personal assets.
- Liability is restricted to the amount invested in the company.
- Common structure, attracting more investors and larger businesses.
- Variants include private limited (Ltd.) and public limited (PLC) companies ..
Unlike a Limited company, the shareholders of an Unlimited Company do not enjoy limited liability, meaning that their personal assets are at risk should the company become insolvent. This company type must have an objects clause in its constitution.
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Verified answer
Answer:
- **Unlimited Company:**
- Owners have unlimited personal liability for the company's debts.
- No limit on the liability of shareholders.
- Typically small businesses or partnerships.
- Not as common due to higher risk for owners.
_____________________________________
- **Limited Company:**
- Shareholders have limited liability, protecting personal assets.
- Liability is restricted to the amount invested in the company.
- Common structure, attracting more investors and larger businesses.
- Variants include private limited (Ltd.) and public limited (PLC) companies ..
Answer:
Unlike a Limited company, the shareholders of an Unlimited Company do not enjoy limited liability, meaning that their personal assets are at risk should the company become insolvent. This company type must have an objects clause in its constitution.
I hope you like this answer ☺️