The correct answer is A. limited liability.
In a corporation, the shareholders are only liable for the amount of money they have invested in the company. This means that if the company goes bankrupt, the shareholders cannot be held personally liable for the company’s debts. This is in contrast to a sole proprietorship or partnership, where the owners are personally liable for the debts of the business.
Limited liability is one of the main advantages of forming a corporation. It provides a layer of protection for the shareholders, which can make it easier to attract investors.
B. unlimited liability is not correct because in a corporation, the shareholders are only liable for the amount of money they have invested in the company.
C. general liability is not correct because in a corporation, the shareholders are not personally liable for the debts of the company.
D. controlled ownership liability is not correct because in a corporation, the shareholders do not have control over the company’s management.