Which of the following would be an example of a corporation?
A)Sparkles is a business firm owned by a single person who takes up complete liability for the business.
B)The owners of Octave Inc. are not personally responsible for the debts and obligations of the firm.
C)The profits earned by Luxe Clothing are legally considered as the income of the firm's owners.
D)The dissolution of Nutrimax Pizzas results in its owners having to repay the debts of the firm.

Question

Quizplus · Accepted Answer

Option B is an example of a corporation because it mentions that the owners are not personally responsible for the debts and obligations of the company. This indicates that the company is a separate legal entity, and the liabilities are limited to the assets of the corporation. Option A refers to a sole proprietorship, option C refers to a partnership, and option D suggests a general partnership where the partners have unlimited liability.

Which of the Following Would Be an Example of a Corporation