WAEC - Economics (2012 - No. 20)
An arrangement in which the debts of a company can only be paid from its own assets implies
unlimited liability
transferred liability
limited liability
capital liability
Maelezo
Limited liability is a kind of legal protection whereby owners and shareholders have no personal responsibility for their company's debts and financial losses.. In other words, investors' and owners' private assets are not at risk if the company fails.