3 ms·
That would seem like bad corporate governance. Why is this allowed in the case of a limited liability company? It seems like a mechanism to offload liability.
by edoloughlin 11y ago
That would seem like bad corporate governance. Why is this allowed in the case of a limited liability company? It seems like a mechanism to offload liability.
- charlesdm 11y agoOnly if the company goes under. Each business has a different level of acceptable debt. Some entrepreneurs are great at controlling a balance sheet, and can run businesses with a ton of debt (e.g. John Malone) For example: a real estate business needs to use a lot more debt than a software company.