Question

with regard to corporations, to what does \limited liability\ refer? 1 point if a corporation cannot pay its debts, the government insures the investments of the owners. if a corporation fails, investors are able to sue the owners to recover a portion of their money. if a corporation cannot pay its debts, the assets of the owners are protected from creditors. if a corporation fails, the government will purchase the company if it is important to the economy. according to economic theory, what incentive does low demand present to 1 point businesses? it motivates businesses to enter the market. it motivates businesses to lower supply. it motivates businesses to increase prices. it motivates businesses to cooperate.

Explanation:

Limited liability in corporations means that if a corporation cannot pay its debts, the personal assets of the owners are protected from creditors. In economic theory, when demand is low, businesses are motivated to lower supply to avoid over - production and losses.

Answer:

1. C. If a corporation cannot pay its debts, the assets of the owners are protected from creditors.
2. B. It motivates businesses to lower supply.