Which of the following would ensure that business owners would be responsible for losses only up to the amount they invested in the business?

Question

Quizplus · Accepted Answer

Limited liability ensures that business owners are only responsible for losses up to the amount they invested in the business, protecting their personal assets from being seized to cover business debts. Unlimited liability would mean that business owners are personally responsible for all losses incurred by the business, even beyond the amount of their investment. Liability insurance and protection can provide additional coverage, but limited liability is the primary legal framework for protecting business owners from excessive personal liability.

Which of the Following Would Ensure That Business Owners Would