Explain In Detail The Term Limited Liability?


2 Answers

amber Jhon Profile
amber Jhon answered
"Limited liability" means that the liability of a person is limited to a fixed sum. This concept is widely used in the organizations and it refers that the value of the investment of the person is within limited liability and if a company liquidates then the specific person will have limited responsibility. In a limited liable company, the owners of the company or the shareholders are not personally liable to creditors but they share the liability among themselves.

Fangju Fangju Profile
Fangju Fangju answered
Limited liability of the socialist market economy jargon, generally
referred to in the economic field. Limited liability and unlimited liability is
relative, and two of its investment company investors liable for the debts of
the form. That limited liability is limited to settle the obligation, that
investors invest only in their own corporate capital corporate debt obligations
to settle the obligation, insolvency, and its responsibility to remove the
excess part of the natural form. Limited liability system is the socio-economic
development of Chan Wu, for the development of the modern company plays an
important role, he Kefu the burden of unlimited company Gudong  Geren because
of such insolvent the risk of insolvency to facilitate Renmentouzi shares, is to
raise social Tai Liang Guang Fan funds, set up the most effective means of large
enterprises. The more specific language for the formation of companies or
enterprises to indicate the nature of the company or enterprise, such as
"Limited", "limited liability company", "Inc." and so on.

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