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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.
