What will be the position of the owener of the company?If
the company liablites are more than company assets .
a. solvent
b. insolvent
c. profitable
d. liquidity
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Answer Posted / manoharnsr
Since the question is about the insolvancy of the company
it should not impact the solvancy of its owners. However,
in the case of a sole proprietor or a partnership firm the
status of teh organisation and the owners are the same but
in case of companies the owners (equity holders) are not
affected. The liability of the owners is limited to the
extent of their in the company. in certaiin cases directors
can be made directly resposible and liable but that is not
relevant to this question.
Those guys who chose one of the options in the question, i
guess , should also explain why they think so.
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