Which of the Following Statements Is True About Limited Liability

question 42

Multiple Choice

Which of the following statements is true about limited liability?

• A)It is any type of investment where the investor's maximum possible losses is the amount invested.
• B)It is full liability for the debt and other obligations of a legal entity.
• C)It is an undesirable situation where if the debts of the business exceed its ability to pay,creditors may reach the personal assets of the business owners.
• D)With limited liability,all it takes is one successful personal injury lawsuit,not covered by insurance,to destroy years of hard work by an individual business owner.
• E)With limited liability,every partner in the partnership is jointly and severally liable for the partnership's debts and obligations.

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Definitions:

E-leadership

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