Tess and Tijuana have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for Tess and Tijuana to avoid this risk would be to organize their firm as an):
A)General partnership.
B)Limited partnership.
C)Corporation.
D)Sole proprietorship.

Question

Quizplus · Accepted Answer

Organizing their business as a corporation would allow Tess and Tijuana to separate their personal assets from those of the business. This means that if the business were to fail, their personal assets would not be at risk. Both general and limited partnerships involve personal liability for the partners, while a sole proprietorship is essentially an extension of the owner's personal finances and assets. Therefore, a corporation is the best choice for Tess and Tijuana if they wish to limit their personal liability.

Tess and Tijuana Have Considered Starting Their Own Business but Are