If business assets are not sufficient in a company then what will happen?

Dear student,

If business assets are not sufficient in a company than it will not be in position to function smoothly and to pay off its debts. In such a case company can go for liquidation and the directors of the company will became personally liable for the debts of the company.

Regards

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The company has to suffer from losses because the production and supply process did not occurs properly.
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If business assets are not sufficient enough, the shareholders will have to contribute in order to meet the liability towards creditors and not the members of the company since the members have a limited liability.
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If the Business assets are not sufficient in a company then the company will suffer many problems to run and
to perform business activities. Either from scarcity of funds business will be closed or business would suffer
 Loss.
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bhai company dub jaayegi ! :P 
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