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Which one of the following categories of owners enjoys limited​ liability?

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Part 1
A.Shareholders​ (common stock) of a corporation
B.General partners in a limited partnership or limited liability company.
C.Sole proprietors
D.Both A and B

1 Answer

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Final answer:

Shareholders of a corporation enjoy limited liability, meaning they are only liable up to their amount of investment and are not personally responsible for the corporation's debts.

Step-by-step explanation:

The category of owners that enjoys limited liability is A. Shareholders (common stock) of a corporation. In a corporation, shareholders' liability is restricted to the amount they have invested, meaning that they are not personally liable for the company's debts beyond their investment. On the other hand, general partners in a limited partnership and sole proprietors face unlimited liability, putting their personal assets at risk to cover business debts. A limited liability company operates differently allowing members to enjoy limited liability much like shareholders in a corporation.