Multiple Choice QuestionOwners in an LLC have ______ liability.Multiple choice question.limitedunlimitedno

1. Break Down the Problem

We need to determine the type of liability that owners of a Limited Liability Company (LLC) have from the given options: limited, unlimited, or no liability.

2. Relevant Concepts

• Limited Liability: This means that the owners (members) of the LLC are only responsible for the debts and obligations of the business up to their investment in the company.
• Unlimited Liability: This applies to owners of sole proprietorships or partnerships where personal assets can be used to cover business debts.
• No Liability: This can imply that owners are not responsible for any debts, which is not typically the case in LLCs.

3. Analysis and Detail

In an LLC, the defining characteristic is that members’ personal assets are protected from business liabilities. This protection is what is referred to as “limited liability.” It contrasts with unlimited liability, where personal assets can be pursued by creditors. No liability is not a standard term used in this context, as members usually have some level of responsibility proportional to their ownership stake.

4. Verify and Summarize

Given that LLC members only risk their investment in the business and are not personally liable beyond that, the correct answer is “limited liability.”

Final Answer

The correct choice is limited.