Limited liability

The limitation placed on the amount an investor of acorporation can lose resulting from a lawsuit against the corporation or otherloss suffered by the corporation; the liability for losses that is limited tothe amount an investor or shareholder invests in the corporation. Thecorporation itself also enjoys limited liability inasmuch as the corporation'sobligations are always limited to its assets unless, with regard to particulartransactions, personal responsibility is assumed by an officer or shareholderof the corporation.