Limited liability means that, legally, shareholders cannot take part in the running of the firm in which they have shares.

Question

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Limited liability means that shareholders are only financially liable up to the amount of their investment in the company and are not personally responsible for the company's debts, but it does not prevent them from participating in the running of the company, often through voting on significant issues at shareholder meetings.

Limited Liability Means That, Legally, Shareholders Cannot Take Part in the Running