Limited liability means that even in the event of bankruptcy,stockholders in a corporation can lose no more than the amount they invested in the company.

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Limited liability is a fundamental aspect of corporate law, which ensures that the shareholders are not responsible for the debts and liabilities of the corporation beyond the capital they have invested. In other words, their personal assets are shielded from the claims of the company's creditors, and they can only lose the value of their shares in case of bankruptcy or insolvency. This legal protection is a key advantage of the corporate form of business organization, as it encourages investment and entrepreneurship by reducing the risk of financial ruin or liability for shareholders.

Limited Liability Means That Even in the Event of Bankruptcy,stockholders