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. Get notes from here https://instagram.com/padhaku_log?igshid=16luafh5weq49 Check out our playlists- Law - https://www.youtube.com/watch?v=P0qBycPgl6U&list=PLAxciooZTrO1minj7xBg5dginOtUGhuzu Difference Between playlist https://www.youtube.com/playlist?list=PLAxciooZTrO2s6EDBxpTAS_qlKlcDqjJG General terms- https://www.youtube.com/playlist?list=PLAxciooZTrO1jygUVeRGBIc3stbD2fuub Economics- https://www.youtube.com/watch?v=m631mb3_BU8&list=PLAxciooZTrO3IE7Fv-lQXK_FsWfcGGhsH Geography - https://www.youtube.com/watch?v=rc1GJujcWX4&list=PLAxciooZTrO0y4rcET1KoaRxnWTfulOJV General Knowledge- https://www.youtube.com/watch?v=0ml2D1e2qjk&list=PLAxciooZTrO2R2ZUuvWnZvIw_WUPol8En Case Studies- https://www.youtube.com/watch?v=aTEu1BbvIHM&list=PLAxciooZTrO0XlkrF3D-DCssvNxaZ-p4C GST Registration- https://www.youtube.com/watch?v=JJ0GJrRJ9sg&list=PLAxciooZTrO3iumMTue3BBGljfc7Icou9 CSEET - https://www.youtube.com/watch?v=eC_LA9dvX7w&list=PLAxciooZTrO0n49jKdJPwCZqsoDNH_Qp1 https://www.youtube.com/watch?v=eC_LA9dvX7w&list=PLAxciooZTrO3wydeVEs1x-ha8b-OBhOmb Current affairs- https://www.youtube.com/playlist?list=PLAxciooZTrO3iDBqJgHOtzXKeMpas63WH Connect with us- Instagram- https://instagram.com/padhaku_log?igshid=16luafh5weq49 Facebook- https://www.facebook.com/Padhaku-Log-101091301476679/ Mail id- padhakulog14@gmail.com Watsapp-9630227777 Telegram-9630227777 About us: Padhaku Log is a platform specially created for those students who live in remote areas and don’t have access to fancy coaching classes. A channel which wants to bring parity in knowledge level of all. #limitedvsunlimited #limitedcompany #unlimitedcompany #limitedliability #unlimitedliability #limitedandunlimitedliability #commerceterms #accounts11thclass #accounts12thclass #accounts #commerce #ncert #cafoundation #csfoundation #cseet