{"id":203044,"date":"2022-09-01T16:21:14","date_gmt":"2022-09-01T10:51:14","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=203044"},"modified":"2022-09-01T16:21:14","modified_gmt":"2022-09-01T10:51:14","slug":"suicide-of-businessmen-limited-liability-could-save-some-indian-lives","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/suicide-of-businessmen-limited-liability-could-save-some-indian-lives\/","title":{"rendered":"Suicide of Businessmen: Limited liability could save some Indian lives"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article \u201cLimited liability could save some Indian lives<\/strong>\u201d<\/strong>\u00a0published in\u00a0the Livemint <\/b>on 1st<\/sup> September 2022<\/strong>.<\/p>\n

Syllabus<\/strong>: GS 3 \u2013 Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.<\/p>\n

Relevance<\/strong>: About the suicide of Businessmen and the role of Limited Liability Partnerships(LLPs).<\/p>\n

News<\/strong>: According to the National Crime Records Bureau (NCRB), during the two pandemic years of 2020 and 2021 more businessmen took their own lives than cultivators. This defies pre-covid trends.<\/p>\n

What are the key findings of NCRB data on the suicide of Businessmen?<\/h5>\n

Daily wage-earners committed more suicides<\/strong>: The category of daily wage-earners logged the biggest toll with over 42,000 such deaths in 2021. This is a little above a quarter of the year\u2019s total. The report highlighted business distress caused by the covid crisis as a plausible factor.<\/p>\n

Business folks vs farmers<\/strong>: By last year\u2019s count, more than 12,000 people in business died by suicide. On the other hand above 10,000 individuals engaged in agriculture lost their lives during the same period.<\/p>\n

Subcategory of Businessmen<\/strong>: According to the NCRB database, suicide cases among people who were in business included 4,500+ vendors, 3,600+ tradesfolk and 3,800+ persons doing something else.<\/p>\n

States of Businessmen committed suicides<\/strong>: Karnataka, Maharashtra, Madhya Pradesh, Tamil Nadu and Telangana accounted for half of them.<\/p>\n

What are Limited Liability Partnerships(LLPs)?<\/h5>\n\n\n\n
Read here: Limited Liability Partnership (LLP)<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

India passed its Limited Liability Partnership Act<\/strong><\/a>. This created an LLP format, letting people join hands to set up a business entity governed by far fewer compliance rules than a regular company, but with the personal assets of partners shielded by the law from creditors.<\/p>\n

How Limited Liability Partnership can reduce the suicide of Businessmen?<\/h5>\n

a)<\/strong> It limits the dues of a business to the money wilfully invested in it, b)<\/strong> In LLPs the owners would get a share of profits but have nothing at stake beyond the value of their shares.<\/p>\n

What should be done to improve the effectiveness of LLPs?<\/h5>\n

In the informal sector, defaulting debtors can face severe consequences. But the LLP Act has witnessed only scant adoption. A special campaign to promote LLP enterprise and\/or formalization of the informal economy has to take place.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cLimited liability could save some Indian lives\u201d\u00a0published in\u00a0the Livemint on 1st September 2022. Syllabus: GS 3 \u2013 Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Relevance: About the suicide of Businessmen and the role of Limited Liability Partnerships(LLPs). News: According to… Continue reading Suicide of Businessmen: Limited liability could save some Indian lives<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-203044","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/203044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=203044"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/203044\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=203044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=203044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=203044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}