Caleb Brown has been the sole owner of a bicycle sales and repair shop for many years.Which of the following business types would best protect Caleb's personal assets from product liability exposure?
A) Partnership
B) Limited liability company
C) Proprietorship
D) Not-for-profit

Question

Quizplus · Accepted Answer

A limited liability company (LLC) would be the best option for Caleb as it provides protection for his personal assets while still allowing him to maintain sole ownership of the business. This means that if the business were to face product liability issues, Caleb's personal assets would not be at risk.

Caleb Brown Has Been the Sole Owner of a Bicycle