Under which liability principle are business owners protected from losing more than what they invested in their business?

Limited liability is a principle that protects business owners by ensuring that their personal assets are separate from the business’s debts and liabilities. This means that if the business incurs debts or faces legal actions, the owners are only liable for the amount they invested in the business and are not personally responsible for any losses beyond that investment. This structure encourages entrepreneurship because it minimizes the financial risk to personal wealth, allowing individuals to start businesses without the fear of losing everything they own.

The other options, such as unlimited liability, would subject owners to greater financial risks where they could potentially lose personal assets. Procedural due process and sovereign immunity are not liability principles; rather, they pertain to legal rights and protections within the governmental and judicial systems and do not relate to business ownership risk. Thus, limited liability is the correct choice, as it directly addresses the concern of protecting owners from excessive financial losses.