The members of which of the following business organizations do not have limited liability?a)Sole Proprietorshipb)Joint Stock Companyc)Cooperative Societiesd)Government CompanyCorrect answer is option 'A'. Can you explain this answer?

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According to me, The sole proprietor is personally liable for all the debts. ln case of heavy losses the proprietor will not only loss all his business assets but he may have to sell his personal property to pay back his debts.

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According to me , The sole proprietor is personally liable for all the debts. ln case of heavy losses the proprietor will not only loss all his business assets but he may have to sell his personal property to pay back his debts.

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Sole proprietorship because he manages the company along and in case he wants to wind up in debt he pays for it alone with his property which might not be enough in settling the debt

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A sole proprietor is one who owns and manages the business unit individually has unlimted liability because his borrowing capacity depends upon his personal assets, and relations. so correct answer is a

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It's ofcourse the sole proprietorship..becz it's run by a single person who is the owner of the business..so all the liabilities exists on his shoulders...

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The answer to this question is wrong

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Limited liability refers to the legal protection given to the owners or shareholders of a business organization. It limits their personal liability for the debts and obligations of the business. In other words, if the business were to face financial difficulties or legal liabilities, the owners or shareholders are only responsible for the amount they have invested in the business, and their personal assets are not at risk.

Out of the given options, the business organization that does not have limited liability is a Sole Proprietorship.

Here is a detailed explanation for each option:

a) Sole Proprietorship:
- A sole proprietorship is a business owned and operated by a single individual.
- The owner and the business are treated as the same legal entity.
- The owner has unlimited personal liability for the debts and obligations of the business.
- This means that if the business cannot meet its financial obligations, the owner's personal assets can be used to satisfy those obligations.
- Therefore, the members of a sole proprietorship do not have limited liability.

b) Joint Stock Company:
- A joint stock company is a business organization that has multiple shareholders who own shares in the company.
- The liability of the shareholders is limited to the amount they have invested in the company.
- If the company faces financial difficulties or legal liabilities, the shareholders are not personally responsible beyond their investment.
- Therefore, the members of a joint stock company have limited liability.

c) Cooperative Societies:
- Cooperative societies are voluntary associations of individuals who come together to meet common economic, social, and cultural needs.
- The liability of the members of a cooperative society can vary depending on the type of cooperative and its governing rules.
- In some cases, the liability of the members may be limited to the amount they have invested or subscribed to the cooperative.
- Therefore, it is possible for the members of a cooperative society to have limited liability.

d) Government Company:
- A government company is a company in which the government holds a majority stake or control.
- The liability of the shareholders in a government company is limited to the amount they have invested in the company.
- Therefore, the members of a government company have limited liability.

In conclusion, the members of a Sole Proprietorship do not have limited liability, while the members of Joint Stock Companies, Cooperative Societies, and Government Companies generally have limited liability.

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