These benefits include simplicity of raising cash, professional management, transferability of ownership, and limited liability for shareholders.
Limited liability refers to the circumstance in which a business firm's owners (shareholders) liability for losses is restricted to the amount of capital they have invested in the company and does not include any personal assets.
A person with limited liability has a legal status where their financial obligation is capped at a certain amount, typically the amount they invested in a corporation, business, or partnership.
Limited liability means that the business owners' financial investment in the company limits their liability for debts. The business owner is individually liable for any losses the company suffers under an unlimited liability agreement.
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