Contracts
Limited liability is a legal structure that protects the personal assets of shareholders and owners in a corporation or business entity, meaning they are only financially responsible for the debts and obligations of the business up to the amount they have invested. This concept allows individuals to invest in a business without risking personal financial ruin, encouraging entrepreneurship and investment in corporations and other business forms. It is a fundamental characteristic of corporations and certain types of partnerships that shapes the relationship between risk and investment.
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