Regarding corporations,which statement follows the principle of limited liability?

Question

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The principle of limited liability means that the financial liability of the shareholders in a corporation is limited to the amount of their investment in the company. In other words, shareholders are not personally responsible for the debts and obligations of the corporation. Choice A describes a director who would be personally liable for his actions, and choice B describes a situation where shareholders provide personal guarantees, which goes against the principle of limited liability. Choice D pertains to the repayment of corporate property, not the liability of the shareholders. Choice E describes a situation where a shareholder receives a dividend despite the corporation not making any profit, but it does not relate to the liability of the shareholder.

Regarding Corporations,which Statement Follows the Principle of Limited Liability