The company is the most common form of business structure because it offers a number of advantages over the partnership.The most important advantage is:

Question

Quizplus · Accepted Answer

Limited liability means that the owners of the company are not personally liable for the debts or obligations of the company beyond their investment. This provides a level of protection for the owners' personal assets and therefore reduces their risk. This is a major advantage over partnerships where partners are personally liable for the debts and obligations of the business. The ease and low cost of formation and privacy are also advantages of the company structure, but they are not as significant as the limited liability protection. The option for investors and creditors to choose from multiple borrowers is not a direct advantage of the company structure.

The Company Is the Most Common Form of Business Structure