Limited Liability Means That

Multiple Choice

Limited liability means that:

A) the creditors of a corporation can receive only up to, and no more than, the amount due to them
B) corporations can have liabilities up to only a certain amount due to limits on the company's borrowing capability
C) the company is required to pay only current liabilities in the current year and has no obligation to pay long- term liabilities in the current year
D) the creditors of the corporation have claims on only the assets of the corporation and not the assets of the owners of the corporation