Question

The members of a certain business run the risk of losing their personal property should the enterprise fail. This is because they
1.have unlimited liability
2. have limited liability
3.are members of the board of directors
4.own ordinary shares

Answer 1

I believe the answer is 2/b, have limited liability. this is because they are paying for insurance, which only gives them a limited amount of times where they can ask for a payout before the insurance either skyrockets, or your plan is cancelled because you are deemed a flight risk. hope that helped!