Limited liability is a situation in which a business owner's liability for debts and losses of the business is limited.
A. True
B.False
A. True
To get the answer to this question, we need to understand the concept of limited liability. Limited liability is a legal status that separates the liabilities of a business from the personal liabilities of its owners. In a limited liability situation, the business owner's liability for the debts and losses of the business is limited to the amount they have invested in the business. This means that the personal assets of the business owner, such as their home or car, are generally not at risk to satisfy business debts.
In this case, the statement is true because limited liability does indeed refer to a situation where a business owner's liability for the debts and losses of the business is limited. Therefore, the correct answer is A. True.