Owners are not personally responsible for the debts of the business if the form of business organization is a
A)partnership.
B)nonprofit organization.
C)corporation.
D)sole proprietorship.

Question

Quizplus · Accepted Answer

In a corporation, the business is considered a separate legal entity from its owners (shareholders). As a result, the owners are not personally liable for the debts of the business beyond their investment in the company. This limited liability protection is one of the key advantages of forming a corporation.

Owners Are Not Personally Responsible for the Debts of the Business