Limited liability means: liabilities of a company cannot exceed its assets. companies are less likely to be sued if they are formed as a corporation. stockholders of a corporation are not obligated to pay the corporation's debts out of their own pocket.

The correct answer is "Stockholders of a corporation are not obligated to pay the corporation's debts out of their own pocket.".

Explanation: Limited liability means: Stockholders of a corporation are not obligated to pay the corporation's debts out of their own pocket.

Limited liability is the case in which the liability is limited to the capital contributed, and therefore, in the event that debts are incurred, it does not respond with the personal assets of the partners, but to the one contributed in said Limited company

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