limited liability
- A characteristic of corporations and LLCs that limits a business owner's financial responsibility to the amount invested in the business, protecting personal assets from business debts, claims, and judgments
- The restaurant owner appreciated the security of limited liability, knowing her personal assets were safe even if the business failed.
- He incorporated his startup to take advantage of the limited liability feature.
- Due to the concept of limited liability, creditors could not seize the individual's personal assets when the company went bankrupt.
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