In which business structure do owners have limited liability?
Practice Questions
1 question
Q1
In which business structure do owners have limited liability?
Sole proprietorship
General partnership
Limited liability company (LLC)
Joint venture
A limited liability company (LLC) provides limited liability protection to its owners.
Questions & Step-by-step Solutions
1 item
Q
Q: In which business structure do owners have limited liability?
Solution: A limited liability company (LLC) provides limited liability protection to its owners.
Steps: 4
Step 1: Understand what limited liability means. It means that the owners are not personally responsible for the company's debts.
Step 2: Learn about different business structures. Common types include sole proprietorships, partnerships, corporations, and limited liability companies (LLCs).
Step 3: Identify which business structure offers limited liability. An LLC is a type of business structure that protects its owners from personal liability.
Step 4: Conclude that if you want limited liability protection, you should choose an LLC.
