Limited Liability (Noun)
Meaning
The liability of a firm's owners for no more than the capital they have invested in the firm.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company is organized as a limited liability partnership, meaning the owners' personal assets are protected from business debts and liabilities.
- Limited liability allows business owners to take risks without putting their personal assets at risk of being seized to meet the debts of the business.
- One of the main advantages of forming a corporation is that it provides limited liability to its shareholders.
- The benefits of limited liability companies include protection of personal assets and tax advantages.
- By registering as a limited liability company, entrepreneurs can protect their homes and life savings from being affected in case the business incurs heavy losses.