Which of the following protects shareholders from loss beyond their investment in case of company debts?

The protection offered to shareholders from losses beyond their investment in the event of company debts is known as limited liability. This concept means that shareholders' financial responsibility for a company's debts is capped at the amount they have invested in the company. Therefore, if a company incurs debts and those debts exceed its assets, shareholders will not be personally held responsible for paying off those debts beyond their investment.

Limited liability is a fundamental characteristic of corporate structures, particularly within limited companies. It encourages investment because shareholders can participate in a company's growth potential without the risk of losing personal assets.

In brief, because of limited liability, shareholders enjoy peace of mind knowing that their financial exposure is limited only to the capital they contributed to the company, thereby fostering a more attractive environment for investment in businesses.