Select the alternative that better relates to limited liability in corporations.

Question

BlackTom AI · Accepted Answer

The task asks us to select the alternative that best relates to limited liability in corporations.

First, consider the concept itself: limited liability means that shareholders' personal assets are generally protected from the company’s debts and obligations; in most cases, shareholders are only at risk for the amount they invested in the company.

In the provided data, the stated option is: 'Shareholders are not responsible for their company's debts.' This statement directly expresses the core idea of limited liability by indicating that shareholders do not bear personal financial responsibility for corporate liabilities beyond their investment.

Now, since no other answer options are given in the 'answer_options' field, there is no alternative to compare against. In a typical multiple-choice setup, you would weigh other statements (for example, distinctions between sole proprietorships versus corporations, or clarifications about piercing the corporate veil under extreme circumstances) to determine which best aligns with limited liability.

Given the absence of additional choices, we can still evaluate the provided statement on its own: it captures the essential feature of limited liability in corporations—the protection of shareholders from personal liability for debts. The formulation emphasizes personal non-liability rather than, say, creditors' rights or potential exceptions.

If you later receive other alternatives, you would compare each option against the principle that shareholders are generally not personally liable, contrasting any claims that propose personal responsibility, unlimited liability, or exceptions (like corporate veil piercing) to identify the option that most accurately reflects limited liability in a typical corporate context.

COMM_V 298 101 102 103 2025W1 Class 1 and 2 Practice Quiz

Select the alternative that better relates to limited liability in corporations.

View Explanation

Log in for full answers

Similar Questions

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler