Briefly Discuss the Requirements for the Creation of a Limited

question 36

Short Answer

Briefly discuss the requirements for the creation of a limited liability business entity, including an explanation of the important effects meeting the requirements will have.

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Definitions:

Compensatory Damages

A money award equivalent to the actual value of injuries or damages sustained by the aggrieved party.

Tort Suit

A legal action brought by one party against another for a civil wrong that causes harm or loss, resulting in legal liability.

General Damages

In a tort case, an amount awarded to compensate individuals for the nonmonetary aspects of the harm suffered, such as pain and suffering; not available to companies.

Actual Value

The true or fair market value of an asset or property as determined by objective assessment or appraisal.