An arrangement in which the debts of a company can only be paid from its own assets implies

  • A unlimited liability
  • B transferred liability
  • C limited liability
  • D capital liability
waec 2012economics

The correct answer is C. limited liability

Limited liability is a kind of legal protection whereby owners and shareholders have no personal responsibility for their company's debts and financial losses.. In other words, investors' and owners' private assets are not at risk if the company fails.

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