Owners are not personally responsible for the debts of the business if the form of business organization is
A) the sole proprietorship.
B) the partnership.
C) the corporation.
D) the nonprofit organization.

Question

Quizplus · Accepted Answer

In a corporation, the owners are shareholders who are not personally responsible for the debts of the business. Instead, the corporation itself is liable for its own debts and obligations. In a sole proprietorship or partnership, the owners are personally responsible for the debts of the business. A nonprofit organization can also have limited liability for its owners, depending on its specific legal structure.

Owners Are Not Personally Responsible for the Debts of the Business