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Examveda

In Corporation characteristics, losses are subject to funds invested actually is considered as

A. limited liability

B. unlimited liability

C. general liability

D. controlled ownership liability

Answer: Option A

Solution(By Examveda Team)

In Corporation characteristics, losses are subject to funds invested actually is considered as limited liability. Limited liability is a type of legal structure for an organization where a corporate loss will not exceed the amount invested in a partnership or limited liability company. In other words, investors' and owners' private assets are not at risk if the company fails.

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