Limitation of possible loss to what has already been invested. The New York Times Financial Glossary
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A restriction of the owners' loss in a business to the amount of capital they have invested.
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limited liability UK US noun [U] LAW
► a situation in which the owners or other shareholders of a company are not responsible for all of its debts if the company fails: »
The bank can rely on limited liability to protect employees and shareholders from lawsuits.
Financial and business terms. 2012.