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andrew11 [14]
3 years ago
9

Limited liability is a benefit available only to A. partnerships. B. corporations. C. sole proprietorships. D. All of the above.

Business
1 answer:
Citrus2011 [14]3 years ago
7 0

Answer: CORPORATIONS

Explanation: Limited liability characteristic of an entity  states that the firm doing the business is a separate legal entity and the liabilities of owners is limited to a certain extent. Thus, if any individual makes a lawsuit against the company then they are suing that separate entity and not the owners of the company.

This provision is applicable only in case of corporations. In partnership and sole proprietorship the owners of the entity could be held personally liable for the liabilities of business and their personal assets could be taken into consideration in case of any default in payments  of liabilities.

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?

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