The concept of limited liability posits that

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Explanation:

Limited liability is a feature of a corporation, limited liability company, and some partnerships. The feature protects shareholder's and member's assets from being used to settle business debts. The limited liability feature gives investors the confidence to invest in a business.

The limited liability feature affirms that the amount of their share contribution limits the liability of a shareholder. Should a business fail to meet its debts obligations, shareholders' assets can not be used to settle the debt.  The limited liability feature validates that the company and its owners are separate and distinct entities.

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