Unlimited & Limited Liability

Unlimited & Limited Liability

Courses Info

Unlimited Liability

Business owners are legally liable for all debts of the business. (Sole Traders or Partnerships have unlimited liability)

The business owners may even have to sell their own possessions to pay off their debts. 

Limited liability

Shareholders can only lose the value of their (shares) investment in the business. Shareholders are separate from the business. 

Tushar Depala

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