Limited liability of shareholders means
A)dividends will be paid regardless of net income.
B)creditors have no legal claim on a shareholder's personal assets.
C)the life of the corporation is limited.
D)deferral or reduction of taxes.

Question

Quizplus · Accepted Answer

Limited liability means that shareholders are not personally responsible for the company's debts and liabilities beyond the amount they have invested in the company. This protects their personal assets from being used to satisfy corporate debts and liabilities.

Limited Liability of Shareholders Means