Define the term "limited liability" and state why you think it is an important feature of the corporate form of organization

What will be an ideal response?

Answer: From a corporate standpoint, limited liability results from the corporation being defined as a legal entity with its own assets and liabilities. Limited liability thus occurs because the shareholders are responsible for no more than their investment in the corporation. Should the firm acquire greater debt than assets and declare bankruptcy, the shareholders do not have personal assets at risk for creditors to acquire.