Limited liability refers to a condition in which the owners of a business are not made responsible with their own assets for the debts the business have. Corporations have limited liability because the organization is a separate entity and it is responsible for its own debts.
The other options aren't correct because in sole propietorships the owner is responsible personally for the debts the business have, in partnerships each partner is liable for all the debts. In the case of franchises, the liability will depend on the corporate structure it has.
