Which of these business structures offers limited liability for its owners? A) Partnership B) Corporation C) Sole Proprietorship D) LLC
Understand the Problem
The question is asking to identify which business structure among the options provided offers limited liability to its owners, meaning that the owners' personal assets are protected from business debts and liabilities.
Answer
LLC and Corporation.
The final answer is LLC and Corporation.
Answer for screen readers
The final answer is LLC and Corporation.
More Information
Both LLCs (Limited Liability Companies) and Corporations (C Corporations and S Corporations) provide limited liability protection, meaning the personal assets of the owners are protected from the business's liabilities.
Tips
A common mistake is thinking sole proprietorships and partnerships offer limited liability. They typically do not; owners are personally responsible for debts and liabilities.
Sources
- Compare types of businesses - Wolters Kluwer - wolterskluwer.com
- Choose a business structure | U.S. Small Business Administration - sba.gov
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