Concept: In this arrangement, the company is a separate legal entity from its owners, so its debts are tied only to its own assets.Explanation: When a company’s debts can be paid only from its own assets, shareholders and owners are not personally liable for those debts. Their private property is safe from business creditors. This protection is known as limited liability. If the company fails and its assets are insufficient, the owners do not have to use personal funds to settle the remaining debts. Thus, the maximum loss an investor can suffer is the money they invested in the company. This matches the meaning of option C exactly.Answer: C. limited liability