Limited liability refers to an owner's liability for which of the following?
I.The amount invested in the entity.
II.The liabilities of the corporation that the owner has personally guaranteed.
III.All of the outstanding liabilities of the corporation.
IV.Only for the corporation's loans from financial institutions

Question

Limited liability refers to an owner's liability for which of the following?
I.The amount invested in the entity.
II.The liabilities of the corporation that the owner has personally guaranteed.
III.All of the outstanding liabilities of the corporation.
IV.Only for the corporation's loans from financial institutions
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Quizplus · Accepted Answer

Limited liability means an owner's financial liability is limited to the amount they have invested in the entity. They are not personally responsible for the corporation's liabilities beyond their investment, unless they have personally guaranteed specific liabilities.

Limited Liability Refers to an Owner's Liability for Which of the Following