According to the principle of ________,the financial obligation corporations have to others is limited to the company and does not extend to its shareholders.
A) limited liability
B) distributive justice
C) limited interest
D) compensatory justice

Question

Quizplus · Accepted Answer

The principle of limited liability means that the financial obligation of corporations is limited to the company, and shareholders are not personally liable for the debts or obligations of the company. This principle is a key feature of corporate law and encourages investment by reducing the risk for shareholders.

According to the Principle of ________,The Financial Obligation Corporations Have