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4 January, 15:49

Choice of ownership determines the degree to which each owner has personal liability for the firm's debts and the sources of funds available to the firm to finance future expansion.

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  1. 4 January, 15:52
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    That statement is true.

    Whenever a profit or liability created by the company, it will spread accordingly according to the percentage owned by the shareholders.

    For example, if Andy has 30 % ownership and Amy has 70% ownership and the company generate $1000 of debt, Andy will be liable for $300 of it and amy will be liable for $700 of it
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