The liability of owners is not affected by the form of business organization selected.

Question

Quizplus · Accepted Answer

The liability of owners may vary depending on the form of business organization selected. For example, in a sole proprietorship, the owner has unlimited personal liability for the business's debts and obligations, while in a corporation, the owners (shareholders) generally have limited liability and are not personally responsible for the corporation's debts and obligations beyond the amount of their investment.

The Liability of Owners Is Not Affected by the Form