What does the fact that a corporation has limited liability mean?
A) Owners' liabilities are limited to the amount invested.
B) It can earn a limited amount.
C) Some of the owners are limited in earnings.
D) The life of the corporation is limited.

Question

Quizplus · Accepted Answer

Limited liability means that the owners' liabilities are limited to the amount they have invested in the corporation. This protects their personal assets from being used to pay off any debts or legal obligations of the corporation.

What Does the Fact That a Corporation Has Limited Liability