Limited Liability Company (LLC): A limited liability company (LLC), is similar to the partnership firm but here, members who run the company consist of only limited partners who enjoy the privilege of limited liability in the organization who can also run the business as a managing member. Limited Liability Limited liability is a concept where the shareholders (who are also considered as the owners of the company) are responsible for the debts of the company limited only to the value of the shares they own in that company. Partnership Company In a partnership firm, more than one owner runs the business. In this case, all the partners have to bear the liability and their partnership ends in case if any one of the partners withdraws or dies, unless any alternative is mentioned in their agreement. Limited Partnership Company A limited partnership company has two types of partners namely, the general partners and the limited partners. The general partners have the same features like the partners of a normal partnership firm. They are liable personally for the debts and losses of the company. On the other hand, the limited partners enjoy the privilege of having a limited liability towards the organization i.e., their liability is limited only to the amount of investment they have done in the organization. This is known as a limited partnership company. To Identify: The meaning of a limited liability company (LLC) and how it differs from a limited partnership firm.

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Answer 1

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1CC

Summary Introduction

Limited Liability Company (LLC):

A limited liability company (LLC), is similar to the partnership firm but here, members who run the company consist of only limited partners who enjoy the privilege of limited liability in the organization who can also run the business as a managing member.

Limited Liability

Limited liability is a concept where the shareholders (who are also considered as the owners of the company) are responsible for the debts of the company limited only to the value of the shares they own in that company.

Partnership Company

In a partnership firm, more than one owner runs the business. In this case, all the partners have to bear the liability and their partnership ends in case if any one of the partners withdraws or dies, unless any alternative is mentioned in their agreement.

Limited Partnership Company

A limited partnership company has two types of partners namely, the general partners and the limited partners. The general partners have the same features like the partners of a normal partnership firm. They are liable personally for the debts and losses of the company. On the other hand, the limited partners enjoy the privilege of having a limited liability towards the organization i.e., their liability is limited only to the amount of investment they have done in the organization. This is known as a limited partnership company.

To Identify:

The meaning of a limited liability company (LLC) and how it differs from a limited partnership firm.

Expert Solution & Answer

Answer to Problem 1CC

A limited liability company (LLC) is a type of business organization where the maximum liability that a partner is supposed to pay is the amount of investment they do in the company. In other words, their liability is limited.

On the other hand, a limited partnership firm has the limited partner having the same feature of limited liability, but along with that they have general partners as well who share the debt obligation of the company personally.

Explanation of Solution

The partners of a limited liability company (LLC) enjoy the privilege of having limited liability.
This simply means that the amount of liability that they have in the business is limited to their investment in the same.
The liabilities of the company cannot be extended to the partner’s personal property unless they invest that property in the business.
The debt that the partners are liable to pay is limited to their amount of investment and the company cannot use their property to pay off their debts.
On the other hand, a limited partnership firm have two types of partners namely, the general partners and the limited partners.
The general partners are similar to the partners of a partnership firm where they are personally responsible for the debts of the company.
But the limited partners enjoy the privilege of having limited liability.
Their liability is limited to the amount of investment they have made in the organization.

Conclusion

A limited liability company (LLC) is a type of business organization where all the partners have the liability limited to the amount they have invested. Alternatively, a limited partnership firm have two types of partners where the general partners have the same obligations but the limited partners have the privilege of enjoying limited liability.

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Answer 2

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1CC

Summary Introduction

Limited Liability Company (LLC):

A limited liability company (LLC), is similar to the partnership firm but here, members who run the company consist of only limited partners who enjoy the privilege of limited liability in the organization who can also run the business as a managing member.

Limited Liability

Limited liability is a concept where the shareholders (who are also considered as the owners of the company) are responsible for the debts of the company limited only to the value of the shares they own in that company.

Partnership Company

In a partnership firm, more than one owner runs the business. In this case, all the partners have to bear the liability and their partnership ends in case if any one of the partners withdraws or dies, unless any alternative is mentioned in their agreement.

Limited Partnership Company

A limited partnership company has two types of partners namely, the general partners and the limited partners. The general partners have the same features like the partners of a normal partnership firm. They are liable personally for the debts and losses of the company. On the other hand, the limited partners enjoy the privilege of having a limited liability towards the organization i.e., their liability is limited only to the amount of investment they have done in the organization. This is known as a limited partnership company.

To Identify:

The meaning of a limited liability company (LLC) and how it differs from a limited partnership firm.

Expert Solution & Answer

Answer to Problem 1CC

A limited liability company (LLC) is a type of business organization where the maximum liability that a partner is supposed to pay is the amount of investment they do in the company. In other words, their liability is limited.

On the other hand, a limited partnership firm has the limited partner having the same feature of limited liability, but along with that they have general partners as well who share the debt obligation of the company personally.

Explanation of Solution

The partners of a limited liability company (LLC) enjoy the privilege of having limited liability.
This simply means that the amount of liability that they have in the business is limited to their investment in the same.
The liabilities of the company cannot be extended to the partner’s personal property unless they invest that property in the business.
The debt that the partners are liable to pay is limited to their amount of investment and the company cannot use their property to pay off their debts.
On the other hand, a limited partnership firm have two types of partners namely, the general partners and the limited partners.
The general partners are similar to the partners of a partnership firm where they are personally responsible for the debts of the company.
But the limited partners enjoy the privilege of having limited liability.
Their liability is limited to the amount of investment they have made in the organization.

Conclusion

A limited liability company (LLC) is a type of business organization where all the partners have the liability limited to the amount they have invested. Alternatively, a limited partnership firm have two types of partners where the general partners have the same obligations but the limited partners have the privilege of enjoying limited liability.

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Answer 3

Question

100%

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1CC

Summary Introduction

Limited Liability Company (LLC):

A limited liability company (LLC), is similar to the partnership firm but here, members who run the company consist of only limited partners who enjoy the privilege of limited liability in the organization who can also run the business as a managing member.

Limited Liability

Limited liability is a concept where the shareholders (who are also considered as the owners of the company) are responsible for the debts of the company limited only to the value of the shares they own in that company.

Partnership Company

In a partnership firm, more than one owner runs the business. In this case, all the partners have to bear the liability and their partnership ends in case if any one of the partners withdraws or dies, unless any alternative is mentioned in their agreement.

Limited Partnership Company

A limited partnership company has two types of partners namely, the general partners and the limited partners. The general partners have the same features like the partners of a normal partnership firm. They are liable personally for the debts and losses of the company. On the other hand, the limited partners enjoy the privilege of having a limited liability towards the organization i.e., their liability is limited only to the amount of investment they have done in the organization. This is known as a limited partnership company.

To Identify:

The meaning of a limited liability company (LLC) and how it differs from a limited partnership firm.

Expert Solution & Answer

Answer to Problem 1CC

A limited liability company (LLC) is a type of business organization where the maximum liability that a partner is supposed to pay is the amount of investment they do in the company. In other words, their liability is limited.

On the other hand, a limited partnership firm has the limited partner having the same feature of limited liability, but along with that they have general partners as well who share the debt obligation of the company personally.

Explanation of Solution

The partners of a limited liability company (LLC) enjoy the privilege of having limited liability.
This simply means that the amount of liability that they have in the business is limited to their investment in the same.
The liabilities of the company cannot be extended to the partner’s personal property unless they invest that property in the business.
The debt that the partners are liable to pay is limited to their amount of investment and the company cannot use their property to pay off their debts.
On the other hand, a limited partnership firm have two types of partners namely, the general partners and the limited partners.
The general partners are similar to the partners of a partnership firm where they are personally responsible for the debts of the company.
But the limited partners enjoy the privilege of having limited liability.
Their liability is limited to the amount of investment they have made in the organization.

Conclusion

A limited liability company (LLC) is a type of business organization where all the partners have the liability limited to the amount they have invested. Alternatively, a limited partnership firm have two types of partners where the general partners have the same obligations but the limited partners have the privilege of enjoying limited liability.

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Answer 4

Question

100%

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1CC

Summary Introduction

Limited Liability Company (LLC):

A limited liability company (LLC), is similar to the partnership firm but here, members who run the company consist of only limited partners who enjoy the privilege of limited liability in the organization who can also run the business as a managing member.

Limited Liability

Limited liability is a concept where the shareholders (who are also considered as the owners of the company) are responsible for the debts of the company limited only to the value of the shares they own in that company.

Partnership Company

In a partnership firm, more than one owner runs the business. In this case, all the partners have to bear the liability and their partnership ends in case if any one of the partners withdraws or dies, unless any alternative is mentioned in their agreement.

Limited Partnership Company

A limited partnership company has two types of partners namely, the general partners and the limited partners. The general partners have the same features like the partners of a normal partnership firm. They are liable personally for the debts and losses of the company. On the other hand, the limited partners enjoy the privilege of having a limited liability towards the organization i.e., their liability is limited only to the amount of investment they have done in the organization. This is known as a limited partnership company.

To Identify:

The meaning of a limited liability company (LLC) and how it differs from a limited partnership firm.

Expert Solution & Answer

Answer to Problem 1CC

A limited liability company (LLC) is a type of business organization where the maximum liability that a partner is supposed to pay is the amount of investment they do in the company. In other words, their liability is limited.

On the other hand, a limited partnership firm has the limited partner having the same feature of limited liability, but along with that they have general partners as well who share the debt obligation of the company personally.

Explanation of Solution

The partners of a limited liability company (LLC) enjoy the privilege of having limited liability.
This simply means that the amount of liability that they have in the business is limited to their investment in the same.
The liabilities of the company cannot be extended to the partner’s personal property unless they invest that property in the business.
The debt that the partners are liable to pay is limited to their amount of investment and the company cannot use their property to pay off their debts.
On the other hand, a limited partnership firm have two types of partners namely, the general partners and the limited partners.
The general partners are similar to the partners of a partnership firm where they are personally responsible for the debts of the company.
But the limited partners enjoy the privilege of having limited liability.
Their liability is limited to the amount of investment they have made in the organization.

Conclusion

A limited liability company (LLC) is a type of business organization where all the partners have the liability limited to the amount they have invested. Alternatively, a limited partnership firm have two types of partners where the general partners have the same obligations but the limited partners have the privilege of enjoying limited liability.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Question

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Answer 6

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100%

Answer 7

Chapter 1, Problem 1CC

Summary Introduction

Limited Liability Company (LLC):

A limited liability company (LLC), is similar to the partnership firm but here, members who run the company consist of only limited partners who enjoy the privilege of limited liability in the organization who can also run the business as a managing member.

Limited Liability

Limited liability is a concept where the shareholders (who are also considered as the owners of the company) are responsible for the debts of the company limited only to the value of the shares they own in that company.

Partnership Company

In a partnership firm, more than one owner runs the business. In this case, all the partners have to bear the liability and their partnership ends in case if any one of the partners withdraws or dies, unless any alternative is mentioned in their agreement.

Limited Partnership Company

A limited partnership company has two types of partners namely, the general partners and the limited partners. The general partners have the same features like the partners of a normal partnership firm. They are liable personally for the debts and losses of the company. On the other hand, the limited partners enjoy the privilege of having a limited liability towards the organization i.e., their liability is limited only to the amount of investment they have done in the organization. This is known as a limited partnership company.

To Identify:

The meaning of a limited liability company (LLC) and how it differs from a limited partnership firm.

Expert Solution & Answer

Answer to Problem 1CC

A limited liability company (LLC) is a type of business organization where the maximum liability that a partner is supposed to pay is the amount of investment they do in the company. In other words, their liability is limited.

On the other hand, a limited partnership firm has the limited partner having the same feature of limited liability, but along with that they have general partners as well who share the debt obligation of the company personally.

Explanation of Solution

The partners of a limited liability company (LLC) enjoy the privilege of having limited liability.
This simply means that the amount of liability that they have in the business is limited to their investment in the same.
The liabilities of the company cannot be extended to the partner’s personal property unless they invest that property in the business.
The debt that the partners are liable to pay is limited to their amount of investment and the company cannot use their property to pay off their debts.
On the other hand, a limited partnership firm have two types of partners namely, the general partners and the limited partners.
The general partners are similar to the partners of a partnership firm where they are personally responsible for the debts of the company.
But the limited partners enjoy the privilege of having limited liability.
Their liability is limited to the amount of investment they have made in the organization.

Conclusion

A limited liability company (LLC) is a type of business organization where all the partners have the liability limited to the amount they have invested. Alternatively, a limited partnership firm have two types of partners where the general partners have the same obligations but the limited partners have the privilege of enjoying limited liability.

Answer 8

Chapter 1, Problem 1CC

Summary Introduction

Limited Liability Company (LLC):

A limited liability company (LLC), is similar to the partnership firm but here, members who run the company consist of only limited partners who enjoy the privilege of limited liability in the organization who can also run the business as a managing member.

Limited Liability

Limited liability is a concept where the shareholders (who are also considered as the owners of the company) are responsible for the debts of the company limited only to the value of the shares they own in that company.

Partnership Company

In a partnership firm, more than one owner runs the business. In this case, all the partners have to bear the liability and their partnership ends in case if any one of the partners withdraws or dies, unless any alternative is mentioned in their agreement.

Limited Partnership Company

A limited partnership company has two types of partners namely, the general partners and the limited partners. The general partners have the same features like the partners of a normal partnership firm. They are liable personally for the debts and losses of the company. On the other hand, the limited partners enjoy the privilege of having a limited liability towards the organization i.e., their liability is limited only to the amount of investment they have done in the organization. This is known as a limited partnership company.

To Identify:

The meaning of a limited liability company (LLC) and how it differs from a limited partnership firm.

Expert Solution & Answer

Answer to Problem 1CC

A limited liability company (LLC) is a type of business organization where the maximum liability that a partner is supposed to pay is the amount of investment they do in the company. In other words, their liability is limited.

On the other hand, a limited partnership firm has the limited partner having the same feature of limited liability, but along with that they have general partners as well who share the debt obligation of the company personally.

Explanation of Solution

The partners of a limited liability company (LLC) enjoy the privilege of having limited liability.
This simply means that the amount of liability that they have in the business is limited to their investment in the same.
The liabilities of the company cannot be extended to the partner’s personal property unless they invest that property in the business.
The debt that the partners are liable to pay is limited to their amount of investment and the company cannot use their property to pay off their debts.
On the other hand, a limited partnership firm have two types of partners namely, the general partners and the limited partners.
The general partners are similar to the partners of a partnership firm where they are personally responsible for the debts of the company.
But the limited partners enjoy the privilege of having limited liability.
Their liability is limited to the amount of investment they have made in the organization.

Conclusion

A limited liability company (LLC) is a type of business organization where all the partners have the liability limited to the amount they have invested. Alternatively, a limited partnership firm have two types of partners where the general partners have the same obligations but the limited partners have the privilege of enjoying limited liability.

Answer 9

Chapter 1, Problem 1CC

Summary Introduction

Limited Liability Company (LLC):

A limited liability company (LLC), is similar to the partnership firm but here, members who run the company consist of only limited partners who enjoy the privilege of limited liability in the organization who can also run the business as a managing member.

Limited Liability

Limited liability is a concept where the shareholders (who are also considered as the owners of the company) are responsible for the debts of the company limited only to the value of the shares they own in that company.

Partnership Company

In a partnership firm, more than one owner runs the business. In this case, all the partners have to bear the liability and their partnership ends in case if any one of the partners withdraws or dies, unless any alternative is mentioned in their agreement.

Limited Partnership Company

A limited partnership company has two types of partners namely, the general partners and the limited partners. The general partners have the same features like the partners of a normal partnership firm. They are liable personally for the debts and losses of the company. On the other hand, the limited partners enjoy the privilege of having a limited liability towards the organization i.e., their liability is limited only to the amount of investment they have done in the organization. This is known as a limited partnership company.

To Identify:

The meaning of a limited liability company (LLC) and how it differs from a limited partnership firm.

Answer 10

Expert Solution & Answer

Answer to Problem 1CC

A limited liability company (LLC) is a type of business organization where the maximum liability that a partner is supposed to pay is the amount of investment they do in the company. In other words, their liability is limited.

On the other hand, a limited partnership firm has the limited partner having the same feature of limited liability, but along with that they have general partners as well who share the debt obligation of the company personally.

Answer 11

Expert Solution & Answer

Answer 12

Expert Solution & Answer

Answer 13

Explanation of Solution

The partners of a limited liability company (LLC) enjoy the privilege of having limited liability.
This simply means that the amount of liability that they have in the business is limited to their investment in the same.
The liabilities of the company cannot be extended to the partner’s personal property unless they invest that property in the business.
The debt that the partners are liable to pay is limited to their amount of investment and the company cannot use their property to pay off their debts.
On the other hand, a limited partnership firm have two types of partners namely, the general partners and the limited partners.
The general partners are similar to the partners of a partnership firm where they are personally responsible for the debts of the company.
But the limited partners enjoy the privilege of having limited liability.
Their liability is limited to the amount of investment they have made in the organization.

Answer 14

Conclusion

A limited liability company (LLC) is a type of business organization where all the partners have the liability limited to the amount they have invested. Alternatively, a limited partnership firm have two types of partners where the general partners have the same obligations but the limited partners have the privilege of enjoying limited liability.

Answer 15

Ch. 1 - Prob. 1CC Ch. 1 - Prob. 2CC Ch. 1 - Prob. 3CC Ch. 1 - Prob. 4CC Ch. 1 - Prob. 5CC Ch. 1 - Prob. 6CC Ch. 1 - Prob. 7CC Ch. 1 - Prob. 8CC Ch. 1 - Prob. 9CC Ch. 1 - What is the basic financial cycle?

Answer to Problem 1CC

Explanation of Solution

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