Respuesta :
The benefits associated with limiting shareholder liability is twofold. First, by protecting shareholders from liability for the acts of the corporation, individuals are willing to invest in the enterprise. Second, limited liability protects the personal assets of a shareholder from claims made against the corporation.
A liability is termed as the things that are owned by the company for a limited period of time and them to be paid up at the full amount. They are recorded at the right side of the balance sheet and includes all the liabilities item that is owned by the company.
The benefits associated with limiting shareholder liability are:
- The first is by protecting the shareholders from liability of the firm for the acts of the corporation at the peak time period when individuals are willing to invest in the enterprise.
- The second is by limiting liability and protecting the personal assets of the shareholder from the claims made against the corporation.
To know more about the advantages of having no personal liability, refer to the link below:
https://brainly.com/question/1318078
