This situation is an example of a limited liability corporation (LLC). Limited liability corporations are designed to protect the owners' personal assets from the company's liabilities, which includes legal costs arising from lawsuits related to the business's products or operations.
A business is sued for damages caused by one of its products. Although the business loses the case, the owners have limited liability from the litigation costs. What is this an example of?
A subsidiary
A small business
A multinational corporation
A limited liability corporation
1 answer
1 answer