Limited Distribution, Limited Liability, Limited Partnership




Limited Distribution, Limited Liability, Limited Partnership :




Limited Distribution : the act of limiting the sale of product to specific markets or certain outlets in a market generally used as a control mechanism for manipulating the manner in which the product is sold, for instance in order to maximise profits, an image of exclusivity is maintained



Limited Liability : the act of restricting the probable losses in case of a business down full or failure : In case of a partnership, the limited partner’s loss is to the extent of the invested amount : The inventor’s losses are also limited to the amount invested except in the case where an officer or shareholder has advanced a personal guarantee that the corporation would also be liable



Limited Partnership : a kind of business firm wherein although certain partners have a financial interesting the organisation, they do not play an active part in the its operations : referred to as limited partners, they have a limited liability for the company’s debts, which is decided by the amount of capital invested by them : There must be at least one general partner in a limited partnership




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