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... owners, which are all the shareholders, have what is known as limited liability. This means that in the worst-case scenario, let's say that the business suffers from bankruptcy, the owners (who are essentially all the shareholders) only lose what they invested into the business and nothing more. The liability to pay back any debts stops at the business, thus ensuring that the owners are immune."

"But that is extremely risky, economically speaking. Debtors incapable of paying off their d ...

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