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Unlimited liability is a disadvantage because it exposes business owners to personal financial risk; if the business incurs debt or faces legal actions, owners can be held personally responsible for those obligations. This means their personal assets, such as homes and savings, could be at risk to settle business debts. Additionally, this risk can deter potential investors and make it more challenging to secure financing, as lenders may perceive the business as a higher risk without the protection of limited liability.
What else can I help you with?
What is a disadvantage of speaking your ideas?
Which of the following is a disadvantage of speaking your ideas?
What does unlimited mean in science?
Unlimited is a source of something that can produce a never ending amount of something.
What is disadvantage of wrike?
inexistent
'The disadvantage and disadvantage to the non-renewable source of energy?
It takes millions of years to have more of. That's what makes it non-renewable.
What are the advantages and disadvantage of sediment deposition?
I
Does tesco plc have limited or unlimited liability?
it is a plc therefore it has unlimited liabilty, it's shareholders however, have limited liability.
Is unlimited liability a big disadvantage to a corporation?
Unlimited liability is not typically a concern for corporations, as they are structured to provide limited liability protection to their owners and shareholders. This means that shareholders are only liable for the corporation's debts up to the amount they have invested in it, protecting their personal assets. In contrast, unlimited liability is more relevant to sole proprietorships and partnerships, where owners can be personally responsible for business debts. Therefore, for corporations, unlimited liability is not considered a significant disadvantage.
What are the advantage and disadvantage of a partnership?
*availability of large resousces *better decisions *unlimited liability *lack of harmony *availability of large resousces *better decisions *unlimited liability *lack of harmony
What are the disadvantage of a sole proprietorship?
unlimited liability, losses are only borne by the owner, single person's opinions in decision making may lead to less productive decisions.
Are notes payable an example of an asset?
no, they are an example of a liabilty
What is the normal balance of a liabilty account?
A liability account normally has a credit balance.
Why is liability insurance important in the medical office?
why is liabilty insurance important in the medical office
What are advantages of using fusion as an energy source?
Relatively clean energy, and abundant, almost unlimited, fuel. The main DISADVANTAGE is mankind didn't manage to make it work yet.
Advantage and disadvantage of sole proprietorship?
Advantage: Easy to set up and manage, full control over decision-making, simplified tax reporting as business income is reported on personal tax return. Disadvantage: Unlimited personal liability, limited access to capital, potential difficulty in attracting investors or partners.
What type of business organization has the advantage of specialization but the disadvantage of unlimited liability?
A sole proprietorship has the advantage of specialization, as the owner can focus on their specific skills and interests to drive the business. However, it also carries the disadvantage of unlimited liability, meaning the owner is personally responsible for all debts and obligations of the business, which can put their personal assets at risk. This structure is often favored for its simplicity and direct control, but the potential financial risk is a significant drawback.
What are two advantages of using fusion as an energy source?
Relatively clean energy, and abundant, almost unlimited, fuel. The main DISADVANTAGE is mankind didn't manage to make it work yet.
Is dictatorship unlimited or unlimited?
unlimited
