Concept of limited and unlimited liability

[Nightmare]

the concept of limited liability refers to the idea of setting up an upper limit to the amount of money and investor or a shareholder in a business may be required by law to contribute to the settlement of a business that in the event of liquidation or business failure.

If a business is a limited liability company the maximum amount of loss which a shareholder can sustain in the event of a business failure all the amount to be invested by each of them is protected by the law for example the public limited liability companies.

On the other hand the concept of unlimited liability refers to the idea of not settling and upper limit to the amount of money and investor or a shareholder may be required by law to contribute for the settlement of business debt if the business should fall apart.

If a business has unlimited liability the maximum amount of loss which the business owner Consulting if the business could fail is not limited to their capital investment or the amount each agreed to contribute.
the private assets of the owners can be sold to meet the depth of the business for example the private organisation and ordinary Partners in a partnership