Limited liability in Economics means that

Limited liability in Economics means that
  • A.
    a shareholder’s liability in the event of debt or bankruptcy is limited to the amount he has invested
  • B.
    a shareholder’s liability for the debt company is dependent on how much he is owing
  • C.
    shareholders can not be asked to pay for the debts of the company
  • D.
    shareholders try to ensure that only a small proportion of the debt comes to them
  • E.
    shareholders want all the debts paid equally
Correct Answer: Option A
Explanation
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