Q:

What is the definition of an "unlimited company"?

A:

Quick Answer

An unlimited company is a firm in which the owners of the company accept unlimited liability for its financial obligations. This is also known as an unlimited liability company.

Know More

Full Answer

An unlimited company can be either a sole proprietorship or general partnership. According to Business Dictionary, in an unlimited liability company, the partners, owners or stockholders accept personal and unlimited liability for potential debts and obligations of the company. They accept unlimited liability because they avoid double taxation that occurs on a limited company, when the financial liability of a shareholder is limited to the par value of his shares. Unlimited companies are also exempt from having to file their annual accounts with a public authority.

Learn more about Corporations

Related Questions

  • Q:

    What is a service company?

    A:

    A service company refers to a firm that provides intangible goods or labor to a private consumer, government or any other organization. Such a company may specialize in providing things like advice, teaching or expertise, notes Accounting Verse.

    Full Answer >
    Filed Under:
  • Q:

    What happens when a company goes into liquidation?

    A:

    When a company goes into liquidation, business operations are shut down and any remaining assets are sold to pay back the debts incurred by the firm. As a side effect, employees are laid off and may receive redundancy payments.

    Full Answer >
    Filed Under:
  • Q:

    What is the definition of corporate sales?

    A:

    Corporate sales are the sales that a company makes to another company through its everyday transactions. Corporate sales are also called B2B sales, or business-to-business, sales. On the other hand, if sales are made directly to the end consumer, these are called business-to-consumer, or B2C, sales.

    Full Answer >
    Filed Under:
  • Q:

    What is the definition of "corporate veil"?

    A:

    The term "corporate veil" refers to the concept that a publicly traded company's shareholders are shielded from liability connected to that company's actions. If the company incurs corporate debts or breaks laws, the corporate veil concept dictates that shareholders should not be held liable for those errors.

    Full Answer >
    Filed Under:

Explore