Incorporation protects:

Question

Quizplus · Accepted Answer

Incorporation protects shareholders against personal liability for the debts of the company. This means that the company's creditors cannot go after the personal assets of shareholders to pay off the company's debts. Option B is not entirely true because if a manager has committed a wrongdoing, they could be held personally liable for their actions, but incorporation does protect innocent managers who were not personally involved in the wrongdoing. Option C is not entirely true because incorporation does not necessarily protect the public from wrongdoing - the company or individuals can still be held accountable for their actions.

Incorporation Protects