Which of these business forms offers limited liability to its owners? A) Sole Proprietorship B) Partnerships C) Corporations D) All of the above.
Understand the Problem
The question is asking to identify which type of business structure provides limited liability protection to its owners. This involves understanding the characteristics of sole proprietorships, partnerships, and corporations regarding liability.
Answer
Corporations.
The final answer is Corporations.
Answer for screen readers
The final answer is Corporations.
More Information
Corporations provide limited liability, meaning owners (shareholders) are typically not personally liable for the debts and liabilities of the business. This protects personal assets from business attachments.
Tips
A common mistake is thinking partnerships might offer limited liability; however, they typically do not unless structured as a limited liability partnership.
Sources
- Which type of business organization provides limited liability to its owners? - homework.study.com
- Which of the following legal forms of the business organization provide for limited liability? - homework.study.com
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