Limited Liability Means

question 31

Multiple Choice

Limited liability means

• A)that in the event of liquidation,owners need to contribute only enough additional money so as to fully pay off the creditors of a corporation.
• B)the creditors of a corporation can receive only up to and no more than the amount due to them.
• C)that the company is required to pay only current liabilities in the current year and has no obligation to pay long-term liabilities in the current year.
• D)that corporations can have liabilities only up to a certain amount,due to limits on the company's borrowing capability.
• E)the creditors of the corporation have claims on only the assets of the corporation and not the assets of the owners of the corporation.

---

Definitions:

Decision Maker

An individual or entity responsible for making choices or decisions, often in a business or organizational context.

Supervisory Role

A management position where one is responsible for overseeing and guiding employees' or subsidiary organizations' performance.

Organizational Design

The process of structuring mechanisms, roles, and responsibilities within an organization to effectively achieve its goals.

Decision Rights

The authority to make choices regarding an organization's resources and commitments.