Asked in Business & Finance
Business & Finance
Why do liquidation usually result in losses for the creditors or the owners or both?
Creditors and owners lose when it comes to liquidation because the seller is trying to get rid of the items quickly. Since they have to sell quickly, they are generally do so at a discount.
Asked in Business Accounting and Bookkeeping
Why is it important for business records to be separate from the records of the business owners or owners?
It is because of the Business Entity concept where firm(business) is considered to be seperate from its owners. In business records, the owners are treated like the creditors to whom the business is liable. ...
How do a company's creditors protect themselves from the concept of limited liability in the event of the company's insolvency?
Commonly, creditors may insist that an LLC's owners give a personal guaranty as a condition of the debt. ...
Asked in Economics
Who are the main creditors of a corporation?
Bondholders are creditors of a corporation; they have loaned the corporation money and received bonds as evidence of the corporation's. Stockholders, both common and preferred, are owners of a corporation. (STOCKHOLDERS ARE NOT THE CREDITOR) ...
Importance of financial statements for creditors?
Importance of Financial statements are declarations of information in financial terms about an enterprise that are believed to be fair and accurate. They describe certain attributes of the enterprise that are important for decision makers, particularly investors (owners) and creditors. ...
Asked in Companies
Who are the primary stakeholders in a public company?
Primary stakeholders of a public company would include stock holders, investors, owners, creditors, suppliers and others whom have something to lose in the company. Primary stakeholders of a public company would include stock holders, investors, owners, creditors, suppliers and others whom have something to lose in the company. ...
Asked in Credit and Debit Cards
If you and your parents are co-owners in a home are they responsible for your credit card debt if you suddenly die?
No. If the property is titled correctly (Joint Tenants With Rights of Survivorship) then it cannot be attached by creditors upon the death of any of the owners. ...
Can a C Corp file bankruptcy and the owners protect their assets even if they signed personal guarantees with some banks?
No, the owners assets WOULD still be subject to seizure from creditors for all debts that were PERSONALLY guaranteed. The only way to protect personal assets would be for the owners themselves to file personal BK. ...
Asked in Business & Finance
What major advantages of corporations have given rise to their dominance as form of business organization?
The biggest advantage is that the owners can reduce their personal risk while maintaining individual profit. For example, if you incorporate, and the corporation goes out of business owing money, then the creditors (people that are owed money) have to go after the corporation's assets, and not the owners. The same applies in a lawsuit. If a person has a sole proprietorship, and they go out of business, they can lose their personal assets such as their house to creditors. ...
Asked in Deeds and Ownership
Does a general warranty deed that is alread transferred to grantor protect it from the previous owners creditors?
First, property is transferred by deed to the grantee. If the property is transferred to avoid creditors the creditors can still attach it through a court process. If there are already judgment liens, tax liens and mortgage liens recorded against the property then you would acquire it subject to those liens. They do not go away if you transfer the property to someone else. ...
Asked in Homeowner's Insurance
Does home owners insurance cover money stolen from a school PTO?
No, It is the schools choice to obtain coverage for losses from theft on school property or not. Your homeowners insurance would not cover the losses of another party. ...
What are all the Federalists beliefs?
The federalists, led by the likes of Alexander Hamilton, James Madison, and George Washington, were usually property owners, creditors and merchants. They were the "elites" of post colonialism and believed in a strong central government. They believed that the elites should govern post-revolution America, because they are the ones with the knowledge and the wealth. ...
EXAMPLE OF increase in liability equals decrease in owners equity?
A company takes accounts payable to increases revenue but suffer losses.