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Do shareholders have to have to sell their personal possessions if the business fails?
Wiki User
∙ 11y ago
No.
Wiki User
∙ 11y ago
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Why do many business owners prefer corporations over other forms of business organization?
If a business is a sole proprietorship (one owner) or a partnership (more than one owner) and it fails financially then the owners can be liable for the debts of the business. This means that any assets (houses, cars, personal bank accounts) can be seized and sold to satisfy the creditors of the business. However, if the business is incorporated (Inc.) then if it fails only the assets held by the corporation itself can be attached. The "officers" of the corporation (usually the true owners) are not liable for the debt as long as they did not do anything illegal within the framework of the business/corporate contract. So by incorporating the owner is protecting his personal assets as separate from the business.
What Does the government do when an entrepreneur starts a business that fails?
nothing
Which fails to exhibit appropriate tone for a business letter?
I'll get right on that
What happens when the business fails to sell products?
What is the best answer for that question please.
What happen when the business firm fails to sell products?
What is the best answer for that question please.
What is the difference between registered company and partnership?
Unlike the shareholders in a limited company, the members of a general partnership have no financial protection if the business runs into trouble - each partner is responsible for the debts of the partnership as a whole. This means that each partner's personal assets may be at risk if the business fails
A way to protect the personal assets of an investor against losing everything if a business fails?
LIMITED LIABILITY
If you business fails and your equipment is reposed and you still owe the bank money does it come from your personal property?
The business' structure determines whether the owner will be personally responsible for the debt. When the owner incorporates, they are no longer responsible for the debt of their business.
Why do many business owners prefer corporations over other forms of business organization?
If a business is a sole proprietorship (one owner) or a partnership (more than one owner) and it fails financially then the owners can be liable for the debts of the business. This means that any assets (houses, cars, personal bank accounts) can be seized and sold to satisfy the creditors of the business. However, if the business is incorporated (Inc.) then if it fails only the assets held by the corporation itself can be attached. The "officers" of the corporation (usually the true owners) are not liable for the debt as long as they did not do anything illegal within the framework of the business/corporate contract. So by incorporating the owner is protecting his personal assets as separate from the business.
What Does the government do when an entrepreneur starts a business that fails?
nothing
Who decides if a business survive or fails?
The market place.
Only one person is liable if the business fails?
proprietorship
What is the foundation of a business?
Businesses exist to make a profit and to meet the needs of the customers. When a business fails to do this, it may go out of business.
Why is profit important to businesses?
If there is no profit the business fails because thats the reason for the business in the first place. :-)
What shareholder do in sanisbury?
The same as in any other company. Usually shareholders have invested money in a company. If the company does well, they get a 'dividend' of the profits. If the company fails - they lose their money !
Which fails to exhibit appropriate tone for a business letter?
I'll get right on that
What happens when the business fails to sell products?
What is the best answer for that question please.
