Limited liability in Economics means that?

A. a shareholder’s liability in the event of debt or bankruptcy is limited to the amount he has invested
B. a shareholder’s liability for the debt company is dependent on how much he is owing
C. shareholders can not be asked to pay for the debts of the company
D. shareholders try to ensure that only a small proportion of the debt comes to them
E. shareholders want all the debts paid equally

Correct Answer:

Option A – a shareholder’s liability in the event of debt or bankruptcy is limited to the amount he has invested