The security system on this website has been activated. Completing the next challenge shows that you are a human and gives you temporary access. On our “Frequently Asked Questions” website you will find answers to the most frequently asked questions about companies. All types of companies around the world use companies.
Although the exact legal status varies a little from one jurisdiction to another, the most important aspect of a company is limited liability. This means that shareholders can share profits through dividends and share prices, but they are not personally responsible for the company's debts. In addition to raising funds by selling securities, a company can also be financed from other sources. A bank can lend money to the company in exchange for the company's short-term promissory notes, called commercial paper.
Retained earnings are a source of funding once the company is operating profitably. Essentially, an SLE means that if someone takes legal action against your company, your personal finances will be separate and safe from legal action.