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hi… I’m a bit confused after reading the notes on BT that limited liability partnership and limited companies have their owners protected incase the companies hit hard times and forced to go through liquidation, and goes on and states that creditors or banks will only be able to chase after assets which are in owners and company liability and not the organization.. I just wanted to know the difference between company and organization? because so far I find them to be the same thing.. thank you
The notes say:
“The main advantage of limited liability partnerships and limited companies is that if the organisation hits hard times and has to go to liquidation, the owners of the organisation are protected. Creditors and banks can pursue only the assets which are in the company and the owners’ liability, but not the organisation’s, is limited. In contrast, sole traders and partners have unlimited liability for all the business’s debts.”
‘Organisation’ is a general term. A limited company is one type of organisation giving limited liability, limited liability partnership is another type of organisation which gives limited liability.
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