A ________ has limited liability,is a legal entity,and has the greatest potential to raise capital.
A)sole proprietorship
B)general partnership
C)limited partnership
D)corporation

Question

Quizplus · Accepted Answer

A corporation has limited liability, which means that the owners (shareholders) are only liable for the amount of their investment in the company. It is also a legal entity with separate rights and responsibilities from its owners. Corporations have the greatest potential to raise capital because they can issue stocks and bonds to investors. Sole proprietorships and partnerships do not have limited liability and are not separate legal entities, while a limited partnership has some partners with limited liability but also has general partners who are fully liable.

A ________ Has Limited Liability,is a Legal Entity,and Has the Greatest