Question

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

Answer 1

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".

Option: C

Explanation:

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.