PRC-3 · Chapter 2 · Question 13 of 61
A group of software developers forms a company where their personal liability is restricted only to the amount they invested in shares. What legal concept protects their personal assets?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Limited liability
Explanation
Limited liability ensures that shareholders are only financially responsible for business debts up to the value of their shares, protecting their personal wealth.
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