The concept of limited liability says a stockholder of a corporation:

Question

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Limited liability means that a stockholder's liability is limited to the amount of their investment in the corporation. Therefore, they cannot lose more than their investment. Option A is incorrect because limited liability means a stockholder's liability is limited to the amount of their investment in the corporation, and they are not liable for the corporation's liabilities. Option B is incorrect because dividends are not related to limited liability, and there is no limit on the amount of dividends a stockholder can receive. Option D is incorrect because limited liability applies to a stockholder's personal liability, not the corporation's tax liabilities.

The Concept of Limited Liability Says a Stockholder of a Corporation