Which business form has the advantage of limited liability?
A)Corporation.
B)Sole proprietorship.
C)Partnership.
D)All business forms share equal limited liability.

Question

Quizplus · Accepted Answer

Corporation is the business form that has the advantage of limited liability. This means that the shareholders' liability is limited to the amount of money they have invested in the company, and their personal assets are protected from creditors in case the company faces financial difficulties or lawsuits. In contrast, sole proprietorships and partnerships offer unlimited liability, which means that the owners' personal assets are at risk if the business cannot pay its debts.

Which Business Form Has the Advantage of Limited Liability