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    Financial Accounting Study Set 19
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    Exam 1: A Framework for Financial Accounting
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    Limited Liability Means
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Limited Liability Means

Question 57

Question 57

Multiple Choice

Limited liability means:


A) Stockholders of a corporation are not obligated to pay the corporation's debts out of their own pocket.
B) Liabilities of a company cannot exceed its assets.
C) Companies are not allowed to borrow unless they are profitable.

Correct Answer:

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