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Adam was stung by a bee. Now he is frightened not only of bees but of all flying insects. This example illustrates:
Unlimited Liability
A type of business ownership where the owners are personally responsible for all of the debts of the business, with no limit to this liability.
Limited Liability Company
A business structure in the United States that provides its owners with limited liability while allowing the benefits of pass-through taxation.
Guarantees Payment
Refers to the assurance provided by one party to another that payment will be made according to the agreed terms and conditions.
Personally Liable
Being directly responsible for the fulfillment of an obligation or the compensation of a loss, often in a personal capacity rather than corporate.
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