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Rom4ik [11]
2 years ago
10

Limited liability can best be defined as the legal provision that Group of answer choices

Social Studies
1 answer:
Aleks04 [339]2 years ago
3 0

Limited liability can best be defined as the legal provision that "shields owners of a corporation from losing more than what they invested in a firm".

<u>Option:</u> C

<u>Explanation:</u>

Limited liability is basically where the monetary obligation of an individual is restricted to a fixed sum, most generally the amount of an investment of an individual in a business or partnership. If a limited liability corporation is sued then the plaintiffs sue the company, not its shareholders or investors.

Limited liability covers a proprietor so he or she can't lose more money than he or she has invested in a company. In other terms it refers to the amount of risk that an investor takes when investing in an organization.

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