LIMITED COMPANY - LC
A structure of incorporation that limits the liability undertaken by the firm’s shareholders, which is restricted by memorandum of association. In case of insolvency, shareholders are not accountable for more than their investment. The owner of the company would lose the worth of his/her investment in the event the company declares bankruptcy, but he would not be held responsible for its other outstanding debt. This is mostly used in Europe and Canada. Commonly known as limited liability company (LLC), this is used in the United States and some parts of the world. Abbreviated as "Ltd" or "plc".
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