Internal Claim

A claim by a creditor that is restricted to the business's assets and not those of its owners. The liability for the claim arises out of the business itself. As long as the business is legally created and treated as an entity separate from its owners, creditors' claims against the business should not reach the assets of the business owners.

Business owners must work to protect their personal assets from creditors' claims against the business. Following that protection, businesses seek to protect assets that are part of the business itself. For example, a business may be owned by a corporation, while its business property can be owned by a separate real estate trust or limited liability company.

Understanding the nature of claims that can arise out of a business relationship can help business owners and investors determine the appropriate type of business entity to create or invest in. For example, general partnerships and limited partnerships are exceptions to the premise behind internal claims. General partners (of a general partnership or a limited partnership) are liable for the debts and liabilities of the partnership.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Internal reconstruction — is a method of recovering information about a language s past from the characteristics of the language at a later date. Whereas the comparative method compares variations between languages such as in sets of cognates under the assumption that… …   Wikipedia

  • Internal ballistics — Internal ballistics, a subfield of ballistics, is the study of a projectile s behavior from the time its propellant s igniter is initiated until it exits the gun barrel. The study of internal ballistics is important to designers and users of… …   Wikipedia

  • Claim — may refer to: Claim (legal) Claim (patent) Land claim Proposition, a statement which is either true or false A right Sequent, in mathematics A main contention, see conclusion of law This disambiguation page lists articles associ …   Wikipedia

  • Claim jumper — can refer to a dishonest miner who violates another s land claim Claim Jumper restaurants Claim Jumper (NASCAR), a term for a Sprint Cup driver who participates in a Nationwide Series race. This disambiguation page lists articles associated with… …   Wikipedia

  • Claim of Right (disambiguation) — Claim of Right can refer to: Claim of Right Act 1689, an Act of the Parliament of Scotland, confirming the succession to the throne of William II and Mary II following the Glorious Revolution in England Claim of Right 1989, a document crafted by… …   Wikipedia

  • Claim House — may refer to: Claim House (Davenport, Iowa), NRHP nominated St. Nicholas Hotel (Omaha, Nebraska) This disambiguation page lists articles associated with the same title. If an internal link led you here, you may wish to change …   Wikipedia

  • Claim of right doctrine — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • Internal Revenue Service — Infobox Government agency agency name = Internal Revenue Service nativename = IRS abbreviation = IRS logo width = 160px logo caption = seal width = 140px seal caption = formed = July 9, 1953 preceding1 = Bureau of Internal Revenue jurisdiction =… …   Wikipedia

  • Internal consistency of the Bible — An American family Bible dating to 1859. The question of the internal consistency of the Bible concerns the coherence and textual integrity of the Biblical scriptures. This has long been an issue for Christians and Jews, who consider the Bible… …   Wikipedia

  • Internal Market (European Union) — European Union This article is part of the series: Politics and government of the European Union …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.