Business Law
Limited liability is a legal structure that protects a company's owners from being personally responsible for the company’s debts and liabilities. This means that if the business incurs debt or faces a lawsuit, the personal assets of the owners or shareholders are generally shielded from being used to settle those obligations. This concept is crucial for encouraging investment and entrepreneurship, as it reduces the financial risk faced by individuals when starting or investing in a business.
congrats on reading the definition of Limited liability. now let's actually learn it.