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Submitted by Md. Jakaria on 17 April 2025
Study Manual

The text introduces Limited Liability Companies and says owners (shareholders) have 'limited liability', meaning they are 'only responsible for the amount to be paid for their shares'. This is contrasted with sole traders and partners who are 'personally responsible'. Can someone explain this 'limited liability' concept with a simple scenario? What does it really protect the owners from compared to a sole trader if the business fails and has debts?

Study Manual Edition