A very important consideration in picking a legal form of business is
A) how long you plan to run the business
B) How much legal liability you are willing to accept
C) How successful you believe your business will be
D) How many competitors you expect to have

Question

Quizplus · Accepted Answer

The amount of legal liability a business owner is willing to accept is a crucial factor in selecting a legal form of business. Different structures offer varying degrees of protection to the business owner’s personal assets. For example, a sole proprietorship offers no protection, while a corporation provides the most protection. Hence, selecting a legal form that offers protection from legal liability may help mitigate risks and protect assets.

A Very Important Consideration in Picking a Legal Form of Business