Question

Tasmeen owns a retail business along with four other people. Like the other owners, Tasmeen is not personally responsible for the debts of the company. Her personal assets are thus protected in case the company incurs losses. Given this information, it can be assumed that Tasmeen _____.

Answer 1

Answer:

From the given information, it can be assumed that Tasmeen owns a corporation.

Explanation:

• When a person is involved in a business as a co-owner along with other co-owners that share the ownership responsibilities and also benefits among them equally, the type of business owned by them can be deemed to be a 'corporation'.
• In such a business, the personal assets accumulated by the owners are not at stake if in case the business fails or goes bankrupt solely because the failure cannot be regarded to have come because of a single owner.