One of the biggest advantages of corporations is that investors cannot be held personally responsible for the debts of the business. This is the concept of .

Limited liability.

Explanation:

A limited liability company (LLC) is a type of legal hybrid-business structure that can combine both partnership and corporation form of business, and the owners are only responsible for its debts with respect to the amount of capital they have invested. The first formal LLC statute was enacted by Wyoming in 1977 based on the Panamanian LLC and the 1982 German Code.

The operating agreement of a limited liability company establishes the company's method of management, allocation of profits and losses among members, member's rights and responsibilities, restrictions on the transfer of membership interests, voting power, and the process to be followed in dissolving the company.

One of the biggest advantages of corporations is that investors cannot be held personally responsible for the debts of the business. Hence, this is the concept of limited liability.

In conclusion, a limited liability company (LLC) refers to a private company in which the owners are legally responsible for the company's debts but only to the amount of capital he or she has invested.