Asked by Jackson Levine on Jul 25, 2024
Verified
A business firm with limited liability would be a
A) proprietorship.
B) partnership.
C) corporation.
Limited Liability
The liability of the owners of a corporation is limited to the value of the shares in the firm that they own.
Proprietorship
An unincorporated business firm owned by just one person.
Corporation
A legal entity that is separate from its owners, offering limited liability to its shareholders, and having the ability to enter into contracts, loan and borrow money, sue and be sued.
- Comprehend the fundamental frameworks and classifications of business enterprises.
Verified Answer
ZH
Zachary HarrillJul 28, 2024
Final Answer :
C
Explanation :
A business firm with limited liability would be a corporation. A corporation is a legal entity that limits the liability of its owners (shareholders) to the amount of their investment in the company. This means that if the business fails or is sued, the shareholders are not personally responsible for the debts or legal judgments. In contrast, proprietorships and partnerships do not offer limited liability protections.
Learning Objectives
- Comprehend the fundamental frameworks and classifications of business enterprises.