In what type of business do the owners bear no personal financial responsibility for the company's debts and obligations?
A) Partnerships.
B) Corporations.
C) Sole proprietorships.
D) In all of the businesses listed in the other answers.

Question

Quizplus · Accepted Answer

Corporations are legal entities that are separate from their owners, which means that the owners (shareholders) are not personally responsible for the company's debts and obligations. This is known as limited liability, and it is one of the main advantages of incorporating a business. In partnerships and sole proprietorships, the owners have unlimited liability, which means that they are personally responsible for all the debts and obligations of the business.

In What Type of Business Do the Owners Bear No