A group of individuals who wish to start a business that needs considerable funds to initiate and who wish protection in the event that their business fails should
A) form a simple proprietorship.
B) incorporate.
C) establish a partnership.
D) form a complex proprietorship.
E) establish a firm.

Question

Quizplus · Accepted Answer

Incorporating is the best choice for a group of individuals who wish to start a business that needs considerable funds to initiate and who wish protection in the event that their business fails. Incorporating offers limited liability protection to its owners, meaning that they are not personally responsible for the debts and obligations of the business. Additionally, incorporating makes it easier to raise funds and operate the business as a separate legal entity.

A Group of Individuals Who Wish to Start a Business