Type of liability in which stockholders losses are counted for only invested amount in firm is classified as

A. counted liability

B. invested liability

C. unlimited liability

D. limited liability

Answer: Option D

Solution(By Examveda Team)

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.