Which of the following categories of owners have limited liability?
A)General partners
B)Sole proprietors
C)Shareholders of a corporation
D)Both A and B

Question

Quizplus · Accepted Answer

Shareholders of a corporation have limited liability, meaning their personal assets are not at risk for the debts or actions of the corporation. General partners and sole proprietors have unlimited liability, meaning their personal assets can be used to pay for any debts or legal obligations of the business.

Which of the Following Categories of Owners Have Limited Liability