Shareholders in corporations and limited partners in limited partnerships have liability limited to the sum they invested in the business, even for tort liability.

Question

Quizplus · Accepted Answer

Shareholders in corporations and limited partners in limited partnerships are not personally liable for the torts committed by the business. Their liability is limited to the amount of their investment in the business. This is one of the main advantages of investing in these types of entities.

Shareholders in Corporations and Limited Partners in Limited Partnerships Have