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Assignment:
Limited Liability
Textbook link here:
Please read 14.3 The Corporate Veil: The Corporation as a Legal Entity:
"In comparing partnerships and corporations, there is one additional factor that ordinarily tips the balance in favor of incorporating: the corporation is a legal entity in its own right, one that can provide a "veil" that protects its shareholders from personal liability."
1. What does it mean to say that shareholders of corporations have limited liability?
2. What does it mean to say that general partners have unlimited liability?
3. What is meant by the legal concept of "piercing the corporate veil"?
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