Limited liability

Limited liability is freedom of stockholders from personal liability for the debts of their corporation or limited liability company.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Limited liability. Freedom of stockholders from personal liability for the debts of the corporation.

Applications

USA vs China

Please compare and contrast types of business organizations in the United States and China. What types are similar and what are not? Is there the "limited liability" concept?

1. Partnership: as opposed to a sole proprietorship company, an enterprise organization in which two or more natural persons jointly contribute to the operation, share profits and losses, and share risks by entering into a partnership agreement. The form of partnership in China is only limited to private enterprises. This kind of business organization is not usual in the US.China has limited liability concept
2. "For example,China has its state-owned enterprise, Chinese government will never allow someone else to open military enterprisein , that is different from America. Otherwise, in America, LLC means limited liability company, but in China it means limited corporation，that means China only accept the commercial entity which have corporate capacity to be LLC. And limited liability company in China called company with limited liability, ""Ltd."" The concept ""limited liability"""
3. In the USA, they have incorporated companies and limited liability company. While in China has the company mentioned above. Besides, they have sole proprietorship, 
4. "Basically, I think the business types in both America and China are similar. We also have proprietorships. Most big companies are llc and llp. In China some outstanding llc enterprises are owned by the government, also in The US the government owns some companies. However, these companies may not profitable as those in China."
5. "L think the similar is  china and us both have many corporations but the difference is china doesn’t have LLC and LLP types of organizations. there is limited liability concept in both country"
6. "They have the same business organization as private enterprises, including in partners and in solo. But the state-owned enterprise in America is just in special industries, but in China they are distribute them in many kinds of industries. In China there is Limited liability company and incorporated liability company. Whatever overseas-funded enterprise or China-invested enterprise, they can be limited liability company."
7. It's similar, but there's still many differences between these two types. In China, the limite is more than which in America. Sole Proprietorship is quite different.
8. America has general common form of Sole Proprietorship, General Partnership, Limited Partnership, Limited company, Corporation, Limited Liability company. There are four basic forms of business organization in China: sole proprietorship, partnership, joint stock limited company and limited liability company.They are all have the limited liability company.
9. "Foreign companies pursue refined management, with process as the core, and process as the result; Chinese companies pursue goal management, with human as the core. Under the effect of refined management, stability and quality consistency are improved, but the ability of emergency response is still lacking. Objective management is a management method that ignores the direct result of the process, and it is a human centered management method, that is, cadres decide the result. And will accumulate a lot of knowledge and detailed experience in management. This kind of management system has the outstanding characteristics of high flexibility, adjustability, experience decision-making and emergency handling."
10. "U.S. and Chinese limited liability companies are called LLC for short, but the meanings are quite different. In the United States, company and corporation have different meanings. Corporation generally refers to a business entity with legal personality, while company refers to all commercial enterprises with legal structure and legal personality, whether registered or not. Limited Liability companies stipulated in the Company law of China belong to the scope of corporation, so Limited Liability companies in China should be translated into Limited Liability corporation, while LLC in the United States corresponds to Limited Liability Company. At present, China's partnership enterprises only have general partnership enterprises and limited partnership enterprises, namely GP and LP, while American partnership enterprises are flexible and diverse, including not only LP and GP, but also limited liability limited partnership LLLP and limited liability partnership LLP. General partnership is traditionally a widely used form of business organization in the field of service in the United States. These industries employ general partnerships that focus on the expertise of the partners and the mutual trust and partnership between them. The partners jointly contribute capital, jointly operate and manage the partnership, each partner ACTS as the agent for the other in the process of the partnership and assumes the obligation of loyalty and non-competition, and all partners assume unlimited joint and several liability for the debts of the partnership, all of which are similar to the general partnership enterprises in China."
11. I do not know. There is the limited  liability  concept.
12. In China, the business organizations generally are corporate system with limited liability company and limited liability company. In the United States, most are private proprietorships or partnerships. Scorp, LLC, LLP, corporate are similar. Proprietary, partners are not. 
13. "“limited liability company"" in China is a profit-making corporation that does not issue shares, but most of Chinese companies are limited liability companies, and whether it is a limited liability company or a limited liability company, its owners are called ""shareholders"". Limited Liability Company (LLC) is a special kind of corporate entity, which is a mixture of Company and partnership, similar to LLP. The owner of LLC is called ""member"", which has limited liability like a company and pays individual income tax instead of corporate income tax like a partnership. Therefore, our limited liability company is not equal to LLC in the United States, but is classified as non-stock/for-profit/closely-held corporation."

Related concepts

• Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related lectures

• Principles of Accounting.