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That gives them leeway should they want to bring in another partner and helps protect their personal assets should there be a freak accident and large liability judgment levied against a property.
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The company contended that it only bought Mundet's bottle-cap assets and that merely buying assets isn't a merger and doesn't trigger liability.
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If the economy were then in a dire state, equity and property prices would have plunged and the assets would not cover the liability.
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Most people, like insurance companies, have varying liability streams , and need assets which adequately fund them.
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Some families are getting around this problem by putting assets into family limited partnerships or limited liability companies and transferring interests in those entities to grandchildren, advisers say.
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Finally, investors in hedge funds will get greater protection if the fund goes bust because the banks that hold the cash and assets of a hedge fund will have increased liability.
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Accordingly, a lower liability discount rate means a larger funding gap between plan assets and liabilities.
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Rather than try to win a judgment in excess of a small firm's liability insurance policy (and potentially force it to liquidate assets, which complicates payment), plaintiffs in many states can sue all along the company's supply chain to sweeten the spoils.
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Because our daily lives are filled with liability exposure, it makes sense to protect your assets from lawsuits and creditors.
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By submitting to the highest levels of scrutiny, HR would expose the entire organization and its executives to potentially increased liability for their stewardship of valuable human capital assets.
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