Rob is an engineer who works in nuclear power plants. He is considering starting his own engineering company. Due to the nature of work at his new company, Rob wants to avoid unlimited liability. Which of the following forms of business ownership is most suitable for Rob?
A) A sole proprietorship
B) A partnership
C) A corporation
D) A sole trader

Question

Quizplus · Accepted Answer

A corporation offers limited liability to its owners, which means that the personal assets of the owners are protected in case the company incurs debts or lawsuits. This is important for Rob considering his work in nuclear power plants, which can have significant risks and potential for large lawsuits. A sole proprietorship and a sole trader offer no protection from liability, and a partnership would still expose Rob to unlimited liability.

Rob Is an Engineer Who Works in Nuclear Power Plants