Question

The best way to explain limited liability is this :- 'you risk what you put in'.

• A. True
• B. False

Answer 1

The correct option is A True

The best way to explain limited liability is this: 'you risk what you put in'. The concept of limited liability restricts the amount of money a person risks to what she invests in a business enterprise. It means that the liability of each person is limited to the extent of his/her share in the business.