What Type of Liability Means That Business Damages And/or Debts

question 2

Multiple Choice

What type of liability means that business damages and/or debts can also be attached to the personal assets of the owners?

• A) informal liability
• B) limited liability
• C) unlimited liability
• D) funding liability

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Definitions:

Basic Interest Rate

The fundamental rate charged on loans or earned on deposits, before any adjustments for additional factors or fees.

Discounted Value

The present value of a future amount of money or stream of cash flows after being discounted by a specific rate.

Present Value

The contemporary evaluation of a future financial sum or cash inflow patterns, using a defined rate of return.

Simple Interest

Simple interest is a method of calculating the interest charge on a loan or investment based on the original principal amount and the rate of interest without compounding.