Jack has a small shop that he runs sa Imited company. He also owns a small two bed flat in his name, which he uses as his personal accommodation One of his customers slipped on the wet floor in his shop, resulting into a lawsuit. The court verdict was in favour of the customer and the limited company was instructed to pay damages and costs totalling to £50,000 by the court. The value of the limited company is expected to be £30.000 Assuming Jack cannot pay this charge from any other source, which of the following statements are true? You may refer the concept of limbed and unlimited liability associated with different business forms. Only the business as the limited company can be auctioned, the court cannot take away the personal property (the flat) The business and the flat can be taken away and auctioned by the court to pay these charges. The court cannot make Jack pay the charges as this may render him bankrupt Only the flat can be auctioned, the court cannot take away the business

Jack has a small shop that he runs sa Imited company. He also owns a small two bed flat in his name, which he uses as his personal accommodation One of his customers slipped on the wet floor in his shop, resulting into a lawsuit. The court verdict was in favour of the customer and the limited company was instructed to pay damages and costs totalling to £50,000 by the court. The value of the limited company is expected to be £30.000 Assuming Jack cannot pay this charge from any other source, which of the following statements are true? You may refer the concept of limbed and unlimited liability associated with different business forms. Only the business as the limited company can be auctioned, the court cannot take away the personal property (the flat) The business and the flat can be taken away and auctioned by the court to pay these charges. The court cannot make Jack pay the charges as this may render him bankrupt Only the flat can be auctioned, the court cannot take away the business

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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