Which one of the following categories of owners enjoys limited liability?
A)General partners in a limited partnership
B)Shareholders (common stock)of a corporation
C)Sole proprietors
D)Both A and B

Question

Quizplus · Accepted Answer

Shareholders of a corporation enjoy limited liability, meaning they are only liable for the amount of money they have invested in the company and are not personally responsible for the company's debts or obligations. General partners in a limited partnership and sole proprietors have unlimited personal liability, meaning they are personally responsible for all of the company's debts and obligations.

Which One of the Following Categories of Owners Enjoys Limited