Limited Liability

question 18

Multiple Choice

Limited liability:

• A) means that there are tight limits on the damages that a firm can be forced to pay due to lawsuits over product safety and so on.
• B) means that the owners of a firm cannot personally be held responsible for the obligations of the firm.
• C) is the major disadvantage of incorporation.
• D) is the major advantage of proprietorship.

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Definitions:

European Forces

Military or political power exerted by European countries, historically significant in various global conflicts, colonization, and international relations.

Confidence Interval

A series of outcome numbers, from sample statistics, expected to contain within the unknown value of a population attribute.

Democratic Candidate

A person seeking or nominated for election representing the Democratic Party in the United States.

Confidence Interval

An interval estimate of a population parameter that is computed from sample data, indicating the reliability of an estimate.