The owner of a proprietorship might decide incorporate the firm as a corporation in order to
A) be able to conduct business in more than one county.
B) avoid the principal-agent problem.
C) be eligible for patent protection of new products.
D) gain limited liability.

Question

Quizplus · Accepted Answer

Incorporating a firm as a corporation provides the owner with limited liability, meaning they are not personally liable for the company's debts and obligations beyond their investment in the company.

The Owner of a Proprietorship Might Decide Incorporate the Firm