From an investor's viewpoint, in today's litigious environment, what would be considered the most advantageous characteristic of the corporate form of organization?
A) Absolute control and management in the hands of shareholders.
B) Limited liability for shareholders.
C) Non-applicability of going concern.
D) Lack of income taxes on the business itself.

Question

Quizplus · Accepted Answer

Limited liability for shareholders means that their personal assets are protected and they are only liable for the amount of their investment in the company. This provides a significant advantage in a litigious environment where lawsuits and legal actions against companies are common occurrences.

From an Investor's Viewpoint, in Today's Litigious Environment, What Would