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Memorandum Decision
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The maximum amount a person participating in a business can lose or be charged in case of claims against the company or its bankruptcy. a stockholder in a corporation can only lose his/her investment, and a limited partner can only lose his/her investment, but a general partner can be responsible for all the debts of the partnership. parties to a contract can limit the amount each might owe the other, but cannot contract away the rights of a third party to make a claim.