What term refers to when the owners of the business have only a relatively small stake in the debts incurred by the business?

A) limited liability
B) sole proprietorship
C) market clearing price
D) fiduciary responsibility

Limited Liability

Explanation:

Limited liability means the liability of a business owner is restricted to the amount that the owner has put into the company. Limited liability is applicable for all business except sole proprietorship. The function of Limited liability is to provide the owner's businesses a way to protect their personal assests.

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