CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

The concept of _____ restricts the amount of money a person risks to what he invests in a business enterprise.

A
Expert assistance
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Unlimited liability
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Separate legal existence
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Limited liability
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

The correct option is D Limited liability
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. Limited liability in simple terms, means that 'you risk what you put in'.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Numerical Example-I
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon