From the perspective of ownership risk, the best form of business organization is the
A) sole proprietorship.
B) corporation.
C) partnership.
D) S corporation.

Question

Quizplus · Accepted Answer

Corporations offer the advantage of limited liability to their owners, meaning the personal assets of shareholders are protected from the company's debts and liabilities. This reduces ownership risk compared to sole proprietorships and partnerships, where owners have unlimited personal liability for business debts. S corporations also provide limited liability, but the question highlights the "best" form, and corporations (including S corporations as a subset) broadly offer the most comprehensive approach to minimizing ownership risk through their legal structure.

From the Perspective of Ownership Risk, the Best Form of Business