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limited liability
Type of investment in which a partner or investor cannot lose more than the amount invested. Thus, the investor or partner is not personally responsible for the debts and obligations of the company in the event that these are not fulfilled.
Learn more about this term
Usage Example
When my brother's company went under, he did not lose any additional money personally because he had structured the company so that there was limited liability.
limited liability
Type of investment in which a partner or investor cannot lose more than the amount invested. Thus, the investor or partner is not personally responsible for the debts and obligations of the company in the event that these are not fulfilled.
Learn more about this term
Usage Example
When my brother's company went under, he did not lose any additional money personally because he had structured the company so that there was limited liability.
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