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Limited Liability Means

Question 18

Multiple Choice

Limited liability means:


A) A company is only liable for an amount that is established by a pre-set limit.
B) Creditors are limited to just the cash available in the company at the time of the loss.
C) Creditors of a company can only claim the assets of the firm and not the assets of the owners of the firm.
D) Creditors of a firm can claim all the assets of a company but only a limited amount of the owner's personal assets.

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