
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Question
Chapter 1, Problem 3P
Summary Introduction
To Determine: The organization forms that give limited liability to its owners.
Introduction:
A limited liability ensures that a proprietor cannot lose more cash than he put resources into an investment. At the end of the day, it alludes to the measure of risk a financial specialist takes when he invests resources into an organization. Contingent upon the way an organization is sorted out, the proprietors can really lose more than their investment, if the organization is bankrupted.
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