Question

Which of the following forms of business structure provides limited liability for the personal assets of the owners? a. sole proprietorship b. general partnership c. LLC d. partnership by implication e. All of the above provide limited liability.

Answer 1

Answer:

The correct answer is option (C).

Explanation:

There are mainly 4 types of company i.e.

• Sole proprietorship: This type of business runs by only a single owner. This type of business has unlimited liability for the personal assets of owners.

• Partnership: This type of business runs by two or more partners. This type of business also has unlimited liability for the personal assets of owners.

• Corporation: This type of business runs by the number of people working as the board of directors and have limited liability for personal assets.

• LLC: Limited Liability Company is a type of business which is run by two or more directors and also have limited liability for personal assets.

As Corporation is not an option, Therefore LLC is the correct answer.