Which of the following categories of owners have limited liability?
A) general partners
B) sole proprietors
C) shareholders of a corporation
D) both A and B

Question

Quizplus · Accepted Answer

Shareholders of a corporation have limited liability, meaning that they are only responsible for their investment in the company and are not personally liable for the company's debts or obligations. General partners and sole proprietors, on the other hand, have unlimited liability and can be held personally responsible for the company's debts and obligations.

Which of the Following Categories of Owners Have Limited Liability