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.
nothing
I'll get right on that
What is the best answer for that question please.
Unless the business takes action to establish what the problems are and implement effective solutions, the business will cease to trade.
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
LIMITED LIABILITY
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.
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.
nothing
The market place.
A corporation can be dissolved voluntarily by its shareholders or directors, or involuntarily by the state if it fails to comply with legal requirements. Dissolution means the company ceases to exist as a legal entity and its assets are distributed to creditors and shareholders.
proprietorship
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.
If there is no profit the business fails because thats the reason for the business in the first place. :-)
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 !
What is the best answer for that question please.