LIMITED LIABILITY

Pronunciation (US):

(GB):

IPA (US):

 Dictionary entry overview: What does limited liability mean? 

• LIMITED LIABILITY (noun)
  The noun LIMITED LIABILITY has 1 sense:

1. the liability of a firm's owners for no more than the capital they have invested in the firm

  Familiarity information: LIMITED LIABILITY used as a noun is very rare.

 Dictionary entry details 

• LIMITED LIABILITY (noun)

Sense 1

Meaning:

The liability of a firm's owners for no more than the capital they have invested in the firm

Classified under:

Nouns denoting possession and transfer of possession

Hypernyms ("limited liability" is a kind of...):

financial obligation; indebtedness; liability (an obligation to pay money to another party)

 Context examples 

A type of company, authorized only in certain states, whose owners and managers receive the limited liability and (usually) tax benefits of an S Corporation without having to conform to the S corporation restrictions.

(Limited Liability Partnership, NCI Thesaurus)