Limited liability is a legal concept in business studies that protects the personal assets of business owners in the event of business-related liabilities or debts. It means that the owners' liability is restricted only to the amount of investment they have made into the business and they are not personally responsible for the debts and obligations of the business beyond this amount. This ensures that personal assets like homes, cars, and personal savings are not at risk in case the business faces financial difficulties or legal issues. Limited liability is commonly associated with specific business entities such as limited liability companies (LLCs) and corporations.
Limited liability is a concept in business studies that refers to the legal protection of the owners or shareholders of a company, limiting their personal financial liability in the event of the company facing financial difficulties or legal issues. In a business with limited liability, the owners' liability is limited to the amount they have invested in the company, usually in the form of their share capital or investments, and their personal assets are generally protected from being used to settle the business's debts. This means that if the company were to face bankruptcy or legal claims, the owners' personal assets would generally not be at risk. However, it's worth noting that limited liability does not necessarily protect against personal liability in certain situations, such as instances of fraud or illegal activities conducted by the owners.
