Caleb Brown has been the sole owner of a bicycle sales and repair shop for several years.Which of the following business types would limit Caleb's personal liability exposure to the entity's debts?
A)partnership
B)limited-liability company
C)sole proprietorship
D)limited-liability partnership

Question

Quizplus · Accepted Answer

A limited-liability company (LLC) would limit Caleb's personal liability exposure to the entity's debts. This means that Caleb's personal assets would be protected in the event that the business runs into financial trouble or is sued for damages. The other options (partnership, sole proprietorship, and limited-liability partnership) do not offer this same level of protection.

Caleb Brown Has Been the Sole Owner of a Bicycle