Do not have to pay the debts of the corporation beyond the amount they put into it What is this called?

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1003957

2026-05-09 15:20

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This principle is known as "limited liability." It means that the owners or shareholders of a corporation are only responsible for the corporation's debts up to the amount they invested in it, protecting their personal assets from being used to settle corporate liabilities. This structure encourages investment by reducing the financial risk for shareholders.

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