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In unlimited liabilities the owner’s (either sole or partnership) liability is not limited to their stake/investment in their business and that their private assets might also be used in order to pay the company's debts if its own assets were insufficient. For example Shareholders are not liable for the of the company’s debts because they only own company’s shares. If they had "unlimited liability" then their private assets could be seized to give the company's debts if company’s own assets were not enough.
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