In which form of organization are the owners' legal responsibility for the debt of the business limited to the amount they invested in the business?

Question

Quizplus · Accepted Answer

This is a defining characteristic of a corporation, where the owners have limited liability and are not personally responsible for the business's debts beyond the amount they have invested. In partnerships and proprietorships, the owners have unlimited liability, meaning they could be personally liable for the business's debts. Cooperatives may have limited liability, but it depends on the specific structure and laws governing them.

In Which Form of Organization Are the Owners' Legal Responsibility