Limited Liability Means

question 23

Multiple Choice

Limited liability means:

• A) the liability of shareholders for company debts is normally limited to the amount they have paid for their shares.
• B) the liability of directors for company debts is limited.
• C) if the company fails, the creditors may have to bear greater losses than if they were dealing with a non-company.
• D) A and C

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Definitions:

American Psychological Association

A professional organization representing psychologists in the United States, dedicated to advancing psychological science and practice.

Social Sciences

A branch of science that deals with the study of societies and the relationships among individuals within those societies.

Cause-Effect Relationship

A connection between two events where one is the result of the other, demonstrating how one event leads to the occurrence of another.

Commonality

The state or fact of sharing features or attributes among different people, groups, or things, leading to a recognized similarity or bond.