limited liability

Related Terms
The legal protection available to the shareholders of privately and publicly owned corporations under which the financial liability of each shareholder for the company's debts and obligations is limited to the par value of his or her fully paid-up shares. The company itself, as a legal entity, is liable for the rest. Also called limited personal liability.

Use 'limited liability' in a Sentence

You may want to strive to have limited liability so that if things go really wrong its not all your fault.
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They were fortunate enough to have limited liability, which gave them some legal protection in areas that they really needed it in.
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You should try to make sure that you have limited liability any time you are doing something that may be very risky.
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