Question
The owners of a business that is incorporated has limited liability. What
does limited liability mean? If the business fails:
* 1 point
C
The owners of a business that is incorporated has limited liability. What does limited
liability mean? If the business fails:
• there is no limit on the amount the owner has to pay to settle debts
the owner is personally liable for all the debts of the business
hy the owner only loses the amount invested in the business
Answer
The owners of a business that is incorporated have limited liability, meaning that if the business fails, the owner is only liable for the amount they have invested in the business and not for any other debts of the business.