Answered: The most important feature of Limited…

Business

Finance

The most important feature of Limited Liability Companies is that it provides limited liability for its members.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter1: An Overview Of Managerial Finance

Section: Chapter Questions

Problem 14PROB

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Concept explainers

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.

Question

5. TRUE or FALSE: The most important feature of Limited Liability Companies is that it provides limited liability for its members.

Group of answer choices

True

False

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