(a) Describe the concept of limited liability.
(b) How it may influence the type of business entity a person chooses when forming a business?
Liability can be defined as the financial obligation arise because of any past event that will create outflow of the economic benefit from the business entity. Liability can be a current liability or non-current liability.
Answer and Explanation: 1
(a) Limited liability: Limited liability can be defined as the obligation where the person has liability towards fixed sum of money or equal to the...
See full answer below.
Become a member and unlock all Study Answers
Start today. Try it nowCreate an account
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
fromChapter 22 / Lesson 7
Understand the definition of Limited Liability Partnership (LLP). Know what an LLP is and learn the advantages of an LLP by understanding LLP examples.