Limited liability is an important feature of:
A) Sole proprietorships
B) Partnerships
C) Corporations
D) All of the above

Question

Quizplus · Accepted Answer

Limited liability is a feature unique to corporations. It means that the shareholders' personal liability is limited only to the amount of money they have invested in the corporation, and they are not personally responsible for the corporation's debts or legal liabilities (except in cases of fraud or illegal actions). Sole proprietorships and partnerships do not have limited liability, and the business owners are personally responsible for any debts or legal liabilities of the business.

Limited Liability Is an Important Feature Of