Q973
In Corporation characteristics, losses are subject to funds invested actually is considered as
A.
limited liability
AnswerB.
unlimited liability
C.
general liability
D.
controlled ownership liability
Answer: Option A
Solution
Answer: Option A
Solution:
In Corporation characteristics, losses are subject to funds invested actually is considered as limited liability. Limited liability is a type of legal structure for an organization where a corporate loss will not exceed the amount invested in a partnership or limited liability company. In other words, investors' and owners' private assets are not at risk if the company fails.