In unlimited liability business, the owner of company has unlimited liability of all debts and credits of business. Another name of unlimited liability company is private unlimited company. It is hybrid type of business which can be run with or without share capital. The shareholders of unlimited liability company have too many non limited obligations for meeting business requirements. The partners or shareholders of this company accept all these unlimited liabilities to avoid double taxation process. This type of business is exempted from disclosing business related issues to public.In the business of limited liability the owners or the shareholders are responsible to pay company debts up to a certain limit which is based on their contribution in business or their shareholdings. It is a type of private limited company. The business structure of this type of company may be formed on the idea of sole proprietorship or partnership. This type of business has to follow many legal rules and regulations for performing its business functions.Private company is owed by non government body or by different shareholders. The company can have many owners. The owners of this company hold a certain number of company shares according to their position or contribution on the business. Different investors of this company become its shareholders. They are not allowed to trade their share or offer it to general public. Contribution of its owners had a huge impact on the business of private company. The owners of private company divide profit and dividend among themselves. Shareholders of this business have to take high risk for making the business successful. They contribute different resources for making the company successful. The owners play a major role in the handling the management process of the company. They hold strong position in the company. Owners of private company have vast knowledge about the product and services of business they are offering. As per their knowledge they take different decisions of business. For example initially Facebook was a private ownership company. Its different shareholders controlled its business operations and functions. Major decisions of the company were taken by considering different opinions of its investors.This type of business has one or more owners. These owners contribute a lot in establishing its business. They invest a lot of money and resources in the business.
ReferenceAbels, G.E. and Klein, P.D., 2008. Business Information: Needs and Strategies. Bingley: Emerald Group Publishing.
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