What is a company's primary shortcoming in terms of its legitimacy as a corporate entity?

Question

Answer

The ability of the owners to raise funds is improved by having more owners.

Answer

The owners have limited liability and cannot endure a loss more than their initial investment.

Answer

The owner has unlimited liability in that personal wealth can be taken
to satisfy debts.

Answer

The owners lack confidentiality because regulations oblige firms to disclose financial results.

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