How Limited Liability is different from Unlimited Liability? | Limited Vs Unlimited Liability
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- Опубліковано 3 жов 2024
- What is a limited liability company?
Limited liability means that the liability of the owners or investors of a company is limited to the total amount of money which they have invested in the business. When the firm is registered as a limited liability firm, the owners of the company will be safe in the event the company goes bankrupt. To elaborate on this idea, ‘limited liability’ will imply that the owner’s losses are only limited to the proportion of their specific share and he or she cannot be made responsible for the losses that are beyond the share of their contribution. We can say ‘Corporation’ is the most popular kind of limited liability company.
What is an unlimited liability company?
We can say unlimited liability is just the opposite of limited liability. In this case, the liability that the owners and investors might have is not limited to the amount that they have contributed. This means that there is no limit to the losses that the owners or investors have to bear.
Nevertheless, there are some strong benefits to investing in a company labelled as ‘unlimited liability’. In financial management, there is a popular phrase which says, “higher the risk, higher the returns”. This will hold good especially in case of unlimited liability companies. Since the risks in front of the investors is very high in case of the unlimited liability model, it is most likely that the investors will get a higher rate of return in the event the company performs well.
How to say the difference between these two types of entities?
Limited and unlimited liability mainly talk about the obligations that the owners have in front of them. They say whether the owners are obliged only in proportion to the sum they have invested in the company or if they can also be held liable personally in case of any losses. In the former case, the personal properties of the owners or investors will not be forfeited if the company suffers losses or goes bankrupt. In the latter case, the personal properties of the investors will also be at stake in the event the firm goes bankrupt.
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Mam maine apki video's se 7,8 topic clear kar diya h 1 din m ..apk padhane ka tarika kaafi acha h thanku mam🙏🙏🙏
Mam , aaj first time aapka lecture dekha , regret hua ki pehle kyu nahi dekha ❤️
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Lovely explanation ....aapki new subscriber hu ma'am ❤❤
🥰
baat ha
What an awesome teaching experience bhut hi asani se apne concept ko smjha diya 🤩🤩
Excellent explanation, you have simplified a complicated topic.
Thanku so much :)
very good way of teaching
I were much confused about the work limited in different banks,
Thanks mam for this great information ❤
Thanku so much mam! Nicely explained❤
❤️❤️
wow..very easy explanation ..thankyou
Thank you soo much mam you are really really very nice techer I understood whole concept very clearly jus because of you soo thankyou
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Well explained ma'am ❤
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Very well explained. Thank you so much. This will help me for my business law module
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excellent mam...superb explanation
very well explained. thanks so much
Very helpful ma'am ji....
Ma'am koi agar shares nhi le raha to vo guarantee kis chiz ke against me de raha hai 🙄🙄usko guarantee dene ke return me kya milega
Thank uh so much mam♥️beautiful explanation 🙌🏻
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मैंने आपकी वीडियो मैग्नेट ब्रेन पर भी देखता हूं मैं कक्षा ग्यारहवीं का छात्रमैं अपने भविष्य में एक चार्टर्ड अकाउंटेंट बनना चाहता और उसके बाद एक अंतर पनियार भी बनना चाहता मैंने आपकी वीडियो रेगुलर देखता हूं और मेरे को इस से बहुत कुछ सीखने को मिलता है इसीलिए मैं आपका धन्यवाद करना चाहता हूं
आप मेरे को आशीर्वाद दे जिससे मैं जीवन में एक सफल व्यक्ति बन सकूं
All the very best beta😊 May u achieve all your goals❤️
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Thank you mam.
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This was awesome. Thankyou.
Excellent explanation
Nice explanation.
Very well explained 🤩
Mazing di
thanks
you cleared all my concepts, Thank you!
❤️❤️
Detailed nd amazing explanation Ma'am! U just quickly simplified the difference between limited libility nd unlimited libility....Thank u! Very helpful vdo for all of us!
Nice information
Well explained 👍
Awesome
Mam is there any benefit of taking unlimited liability shares ?
Nice video nd nicely explained payal mam
Thanku so much Rupesh ji😅
Is this the reason for ltd . written after various companies ?!
Jab unlimited liability itna risky hai toh koi bhi yeh option kyu choose karta hai?
Its an option provided taaki kisi ko krna ho toh kr le…baaki max ppl go for limited liability only
@@padhakulog okay understood. Thank you ma'am.
Bhai unlimited liability vahi hogi jaha profit bhi bada hota hai... Partnership me unlimited liability hoti hai but vahan profit bhi pura pura milta hai or har chiz ki jaankari apko hoti hai.. Badi company me hum invest kr rhe hai uska hme abc bhi nahi pta hota bahar ka fundamental pta hote hai bs still hum benefit bna skte hai but with limited liability.. Hope u got
Why someone will buy unlimited liability shares?
mam i have a question what is limited liability in banking fraud.
Nice video 🙏
thankyouuuuuusoooomuchhhhh
:)
Jra ye to batao ki log unlimited liability lete kyun he ...uska koi fayda he?
Thank you so much ❣️.
Limited by guarantee?
Thank you❤️
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Mee apka 12th bst ka Student hu
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Mam unlimited liability walo ka profit zyada hotah hain kiya? Matlab woh logoko profit 10k ka milaga ya usse se zyada?
Beta Profit zyada mile aisa koi option nhi hai. Jitta banta utta hi milega ya jitta fixed kiya jaye utta.
I think Jarur profit jyada hota hoga ya policies me fayda uthata hoga .....nhi to kise padi h company doobte time apne personal assets bechne ki ...agr profit barabar hua to sab limited liability hi rakhenge...
@@noone6-7 I think limited liability pe assets company ka hotahain or unlimited liability pe assests humarah apna hotahhain so I guess apna pe they can use it for their personal use unlimitedly
Thank uh so muchhhhh
❤️❤️❤️
Ma'am!
Great lecture!
Why do not you record in English Language?
Plz make video on Union territory and state difference
Sure❤️
Thanks mam
❤️
does the company is based on limited/unlimited liability or the members?
What is benefits of unlimited liability?
Titli or ghulabo mam 😂
Gulaboo ma'am and Titli ma'am needs to check balance sheet and cash flow of companies before investing in companies
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Sorry I used in English not but profit ❤️❤️❤️ 💕💕💕💕💕💕💕
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Abhi b hu😅
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Company hi manhus thi😂
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appricated maam
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