Question: What is limited liability? Is it desirable? Why or why not?

What is limited liability? Is it desirable? Why or why not?

Step by Step Solution

★★★★★

3.52 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Limited liability is a legal concept that limits the amount of liability that a business owner or in... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Introduction To Accounting Questions!

Q:

Pina Company had available at the end of 2025 the following information. Pina Company Comparative Balance Sheets As of December 31, 2025 and 2024 2025 2024 Cash $9,960 $4,010 Accounts receivable...

Q:

On December 20, 2017, the Supreme Court of Canada (the Court) released Deloitte & Touche v Livent Inc., 2017 SCC 63 [Livent], a decision in which the Court refined the framework for analyzing a...

Q:

Daisy Chain Preschool Ltd (DCP) has been in the business of providing education, care and a safe environment for under-fives since 2015. Its business plan is based on being able to cater for 70...

Q:

In 2003, 118 firefighters in the city of New Haven, Connecticut, took examinations to qualify for promotion to the rank of lieutenant or captain. Promotion examinations in New Haven (City) were...

Q:

A quiz for MBA finance 570 True/False Indicate whether the statement is true or false. ____ 1. The major advantage of a general partnership or a corporation as a form of business organization is the...

Q:

What type of tenancy is being created by this contract? And how is this type of tenancy different than the other types of tenancies that can be created? The month is October, and the year is 2019....

Q:

Pages 385, 394 and 399 - Corporations, Partnerships and Sole Proprietorships. Using the following page number define the characteristics: ability to finance them and protect investors' assets. Use...

Q:

please help Marco and Cynthia have decided to go into business together. They will operate a burrito dellvery business. They expect to genarate a loss in the first and second years of the business...

Q:

Exercise 6.1 Read the AAA Pool Services, LLC (APS) Limited Liability Company Agreement located at the end of this chapter and answer the following questions. Make sure you note any applicable LLC...

Q:

Exercise 6.1 Read the AAA Pool Services, LLC (APS) Limited Liability Company Agreement located at the end of this chapter and answer the following questions. Make sure you note any applicable LLC...

Q:

Multiple Choice Identify the choice that best completes the statement or answers the question. ____13.Which of the following statements is CORRECT? a. One of the disadvantages of incorporating a...

Q:

A light ray reflects from a plane mirror as shown in the figure. What is the angle of deviation δ? 50

Q:

In the OJ Simpson trial it was accepted that OJ had battered his wife. OJs lawyer tried to negate the impact of this information by stating that in a one year period, only 1 out of 2500 battered...

Q:

The macrs depreciation method applies a constant amount of depreciation each year. Is the same as the double declining balance method

Q:

=+How do they differ from those obtained in Parts (a) and (b)?

Q:

Determine which of the basic accounting concepts apply to each of these situations. 1. Business entity 2. Going concern 3. Monetary unit 4. Periodicity A. A company trades a delivery truck for...

Q:

Describe the four basic business processes.

Q:

Discuss the business processes that are considered operating processes.

Q:

show steps Grenouille Properties. Grenouille Properties (U.S.) expects to receive cash dividends from a French joint venture over the coming three years. The first dividend, to be paid in one year,...

Q:

Mitchell Investments has offered you the following investment opportunity: - $9,000 at the end of each year for the first 3 years, plus Check My Work ( 10 remainine - $7,000 at the end of each year...

Q:

A new accountant at Skysong, Inc. is trying to identify which of the amounts shown below should be reported as the current asset Cash and cash equivalents in the year-end balance sheet, as of April...