Question

1. What is limited liability, and who benefits from it in a corporation?

Answer 1

MEANING-:

Limited liability is a liability in the investors liability whether be in a partnership or company doesn't exceed the amount invested in it. The investors are not personally liable to the amount of debts of the corporation. It is one of the advantage enjoyed by the corporation. The investors particiapte fully in the working and profit share of the corporation but there liability remains restricted to the ampount of money invested by them.

Since the corporations enjoy seperate legal entity the also have their liability limited in nature.

BENEFERIES IN A CORPORATION-:

The owners of the limited liability corporation enjoy the benefit of limited liability. they don't become personaaly liabile to the business debts. The owners or the investors are the benefecries.