Question

The chief distinguishing factor of a corporation is its 1.________ . An investor who purchases stock in a corporation becomes a 2.____________ in that corporation.

1.Properties
assets
limited liability

2. shareholder
worker
chairperson

Answer 1

1. Limited liability

2. Shareholder

The concept of limited liability is one of the main characteristics of a corporation. Limited liability means that the owners are responsible for the debts of the company only to the extent of the money they've contributed to the company.

When an investor purchases shares of a corporation, becomes a shareholder of a corporation. He can then benefit from the growth in the company since he is also the owner of the company.