Practice question · True or false
In an S.L., a shareholder who invested 5,000€ can lose at most 5,000€ if the company goes bankrupt.
Hints
- Ask whose debts they are: the company's or the owner's.
- Limited liability caps the loss at what was contributed.
Show the answer
True
Why
Limited liability caps each owner’s loss at their contribution, the company’s debts belong to the company, not to its owners.
Practise Business Types
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