How Do You Spell LIMITED LIABILITY?

Pronunciation: [lˈɪmɪtɪd lˌa͡ɪəbˈɪlɪti] (IPA)

The term "limited liability" refers to the legal protection offered to business owners, limiting their personal responsibility for the company's debts. The pronunciation of this phrase is /ˈlɪmɪtɪd laɪəˈbɪlɪti/. The first syllable of both "limited" and "liability" are pronounced with a short "i" sound, while the "a" in "liability" is pronounced with a schwa sound. The stress is on the second syllable in "liability." This term is commonly used in the world of business and finance, and the correct pronunciation helps ensure clear and effective communication.

Meaning and Definition
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Etymology
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LIMITED LIABILITY Meaning and Definition

  1. Limited liability is a legal term that refers to a concept in business ownership, where the liability or financial obligation of owners or shareholders is limited to the extent of their investment in a company. In other words, it is a protection mechanism that shields individual owners or shareholders from being personally responsible for the company's debts or legal actions beyond the amount of their own investment.

    Under limited liability, the owners or shareholders of a business entity, such as a corporation or a limited liability company (LLC), are not personally liable for the debts, losses, or legal obligations incurred by the entity. This means that if the company is unable to meet its obligations, its owners or shareholders are not obligated to use personal assets to cover these financial issues.

    This legal framework encourages entrepreneurship and investment, as it provides a level of protection for individuals to take risks in business ventures without the fear of losing more than their initial investment. It separates personal and business assets, creating a distinction between the legal identities of individuals and the entity they own or are a part of.

    Limited liability has become a widely accepted principle in many countries, and it allows businesses to raise capital through the sale of shares or ownership interests while mitigating the financial risk for investors. However, it is important to note that limited liability does not completely shield individuals from liability. In certain situations, such as cases involving fraud, negligence, or illegal activities, owners or shareholders may still be held personally liable.

  2. See liable.

    Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.

Common Misspellings for LIMITED LIABILITY

  • kimited liability
  • pimited liability
  • oimited liability
  • lumited liability
  • ljmited liability
  • lkmited liability
  • lomited liability
  • l9mited liability
  • l8mited liability
  • linited liability
  • likited liability
  • lijited liability
  • limuted liability
  • limjted liability
  • limkted liability
  • limoted liability
  • lim9ted liability
  • lim8ted liability
  • limired liability

Etymology of LIMITED LIABILITY

The term "limited liability" originates from the combination of two separate words: "limited" and "liability".

1. Limited: The word "limited" comes from the Latin word "limitare", which means "to restrict" or "to bound". In English, "limited" refers to something that is restricted, confined, or subject to specific boundaries or conditions.

2. Liability: The word "liability" comes from the Old French word "liable", which means "bound" or "obliged". It ultimately traces back to the Latin word "līabilitās", derived from "līabilis", which means "subject to a legal claim". In general, "liability" refers to legal responsibility or obligation for one's actions or debts.

Similar spelling word for LIMITED LIABILITY

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