Limited Liability And Unlimited Liability

1686 WordsAug 12, 20157 Pages
Limited liability is a socialist market economy terminology, generally referred to in the economic field. Limited liability and unlimited liability is relative, the two investors to assume its responsibility in the form of debt-funded enterprises. The so-called limited liability that is limited repayment liability means investors only invest their own capital to the business enterprise debt repayment bear responsibility, insolvency, excess liability form part of its natural exempt. Limited liability company is an important factor in the rise of big. The next partnership and individual proprietor-ships owner Normally it takes bear unlimited liability for the debt. The system of Limited liability is the product of social and economic…show more content…
For example, according to civil liability occurrence of different points based on breach of contract and tort liability, liability payment in accordance with the contents of a different division of the property and non-property liability responsibility. Limited liability and unlimited liability are used depending on the scope of responsibility of the property to divide. Responsible with all its assets in satisfaction of the secured debt burden, that of unlimited liability; responsible only certain quota of their property as a guarantee of debts, limited liability. Typically, a debtor shall bear all of its property to its debt repayment responsibility to unlimited liability, limited liability applies only in exceptional cases. In other words, civil liability unlimited liability is the norm, limited liability only exception. Limited liability regime in certain socio-political, economic and cultural background to produce, is a product of the commodity economy development needs. However, the limited liability system is not absolute and unconditional, it has its conditions and scope of application. For example, the law of succession needed, is not applicable to any situation, resulting in a particular case can not apply: if the decedent during his lifetime due support obligation debt owed to the heir or heirs need debt owed, not to Heritage The actual value is limited, unlimited liquidity heir bear
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