Multiple choice

Limited liability is available in which form of business organization?

  1. Sole proprietorship

  2. Partnership firm

  3. Hindu undivided family

  4. Company
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A company (corporation) is the only form of business organization that offers limited liability to its owners/shareholders. Limited liability means that shareholders' personal assets are protected - they can only lose the amount they invested in the company, not their personal property. In sole proprietorships and partnerships, owners have unlimited personal liability for business debts.

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