______ is limited exposure to financial risk by investors of a company or a partnership.

Unlimited liability

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Limited liability

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Corporate authority

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Corporate responsibility

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Solution

The correct option is B Limited liability
Limited exposure to financial risk such as outside liabilities and various dues which are faced by investors in the firm is known as limited liability. As the name suggests, liability of investors is limited to an extent and above that limit they have no responsibility for pending dues.

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