Definition: is a legal protection available for shareholders, under which the loss each shareholder might undergo is limited to the nominal value of his or her investments into a specific corporation. The organization itself remains a legal entity and is held reliable for the rest of the financial damage. The practice of limited liability is the most prevalent in the publicly or privately owned corporations and joint-stock companies. Limited liability is considered one of the most advantageous obligations since it allows the shareholders to participate in all of the decision-making activities but saves them from serious debt obligations and losses.
In a Sentence:
No one is financially safe these days, so going with limited liability is the wisest choice possible for you.
Luckily enough, we managed to take advantage of limited liability. It gave us some legal and financial protection when we really needed it.