Define the term Limited company- business ownership

Limited companies can range in size from quite small to very large. Number of individuals who subscribe capital and become owners may be unlimited that provides the opportunity to create a very large-scale business. Liability of owners, though, is limited (thus 'limited' company), that means those individuals subscribing capital to company are liable only for debts incurred by company up to the amount which they have agreed to invest. This cap on the liability of owners is designed to limit risk and to produce greater confidence to invest. Without such limits on owner liability, it's difficult to see how a modern capitalist economy could operate. In numerous cases, owners of a limited company aren't involved in day-to-day running of the business and would, hence, invest in a business only if there is a clear limit set on the level of investment risk.