The proprietors of an unlimited corporation may be held entirely accountable for the company’s debt.
On the other hand, with a limited business, the owners’ strict liability is restricted to a certain extent.
For instance, if firm X is an unlimited corporation and it declares bankruptcy with a debt of Rs 10 cr, the owners may be held personally accountable for paying off the debt.
On the other hand, the owner of a limited business may have been held accountable for just the amount that was determined in advance when the business was formed.
Information provided on this website is for Educational & Informational purposes only and is not considered to be advice or recommendation of any kind whatsoever. Anyone who wishes to apply the concept & ideas contained in this shall take full responsibility. Readers should always do their own diligence on any information perceived from this site to form their own opinion and best judgments. Any action you take upon the information you find on this website (letsthinkwise.com), is strictly at your own risk.