What term refers to when the owners of the business have only a relatively small stake in the debts incurred by the business?

A) limited liability

B) sole proprietorship

C) market clearing price

D) fiduciary responsibility

Question

Social Studies

Emmett Walters

11 January, 13:27

What term refers to when the owners of the business have only a relatively small stake in the debts incurred by the business?

A) limited liability

B) sole proprietorship

C) market clearing price

D) fiduciary responsibility

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Answers (1)

Know the Answer?

Meadow Reeves · Answer 1

Limited Liability

Explanation:

Limited liability means the liability of a business owner is restricted to the amount that the owner has put into the company. Limited liability is applicable for all business except sole proprietorship. The function of Limited liability is to provide the owner's businesses a way to protect their personal assests.

What term refers to when the owners of the business have only a relatively small stake in the debts incurred by the business?A) limited liabilityB) sole proprietorshipC) market clearing priceD) fiduciary responsibility

What term refers to when the owners of the business have only a relatively small stake in the debts incurred by the business?

A) limited liability

B) sole proprietorship

C) market clearing price

D) fiduciary responsibility