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 liable for the company's debts, so creditors cannot claim their personal assets.

Limited Liability of Shareholders Means