The form of business ownership that most effectively limits the risk of ownership is
A)sole proprietorship.
B)general partnership.
C)corporation.
D)none of the above,all forms of business ownership are equally risky.

Question

Quizplus · Accepted Answer

Corporation is the best choice because it is an independent legal entity, which means that the corporation's liabilities are its own and not its owner's. This limits the risk of ownership to the amount of investment made in the corporation. The other forms of business ownership, such as sole proprietorship and general partnership, expose the owners to unlimited liability, meaning that their personal assets may be used to pay off any business debts or obligations.

The Form of Business Ownership That Most Effectively Limits the Risk