Finance General Question:
Download Job Interview Questions and Answers PDF
Explain what are limited liability companies? What are its two types?
![Finance General Interview Answer Finance General Interview Question](https://globalguideline.com/public/images/interview/27.png)
Answer:
The limited liability company (LLC) is a business structure combining both the characteristics of a corporate and of partnership. As a corporate entity it protects its owners against personal liability on the other hand for tax purposes it is treated as a non corporate business organization. A limited liability company enjoys various benefits like owners or members of the company have limited liability due to the company’s separate legal existence, system of profit distribution is very flexible. Unlike a corporate organization it does not have to keep minutes or resolutions and is easier to operate. Tax advantage is the important benefit which a limited liability company enjoys as all the profits, losses and expenses are shared by the individual members. Thus the double taxation of paying corporate tax and individual tax is avoided. With all the above benefits limited Liability Company has few disadvantages also as the company comes to an end after the expiry or insolvency of its members.
There are two types of limited liability companies:
Private Limited Company and Public Limited Company
There are two types of limited liability companies:
Private Limited Company and Public Limited Company
Download Finance General Interview Questions And Answers
PDF
Previous Question | Next Question |
Tell me what are the main duties and responsibilities of a finance executive? | Explain what is capitalization? What is its importance? |