Nate wants to start a business involving the manufacture of fishing boats.However, he is worried that if one of the boats that he sells ends up sinking, he might become bankrupted if the buyer sues him.Which business structure should Nate adopt?

Question

Quizplus · Accepted Answer

A company is a separate legal entity from its owners, which means that the owners (shareholders) are not personally liable for the company's debts or legal issues. This means that if one of Nate's boats were to sink and a buyer were to sue, the company would be responsible for any damages rather than Nate personally. This provides protection for Nate's personal assets and reduces his risk of bankruptcy.

Nate Wants to Start a Business Involving the Manufacture of Fishing