MGT211 - Introduction To Business GDB Fall 2019 Solution
Topic to be tested:
- Basic Forms of Business Organizations
Learning Objectives:
- To understanding the basic forms of business organizations working in real world
GDB Question:
Why there is unlimited liability for the sole proprietorship and limited liability for the joint stock company?
Justify your answer with reasons.
Note: Give brief answer in two bullets points only.
Answer:-
- A only ownership business is owned by one individual who assumes personal responsibilities for the whole of any (money owned) or responsibilities/duties got/caused through his business affairs. Therefore, an only owner possesses unlimited (something you owe/something you’re responsible for/disadvantage).
- The (people or businesses who give money to help start businesses) are protected from losing all their wealth if the trip/business failed, and their (things you owe/thing you’re responsible for/disadvantages) was limited to the money they had used to buy a stake in the company
