Limited liability means that?

A. the debt of a company can only be paid from its own assets
B. the debts of a company are paid from business as well as private funds of the owners
C. a company does not have to pay its debts
D. the debts of a company must be paid from private funds only
E. government cannot tax a company

Correct Answer:

Option A – the debt of a company can only be paid from its own assets