An owner who wants to have limited liability should form which type of business enterprise?

Performance in Last 10 Qs Hard Easy Performance in last 10 questions – there are ‘0’ correct answers, ‘0’ wrong answers, ‘0’ skipped answers, ‘0’ partially correct answers About this Question Question Difficulty Difficulty 60% 72.6% Students got it correct Study this topic • Identify the forms of business organization and the uses of accounting information. Q 1.1: An owner who wants to have limited liability should form which type of business enterprise?

  • A : a sole proprietorship
  • B : a corporation
  • C : a proprietorship
  • D : a partnership

Answer

Option B is correct, a corporation business enterprise should be opted by the one who wants to have limited liability. Because in partnership and proprietorship, both have the unlimited liability.

Please note that limited liability means the loss will not exceed the amount which is invested by the one in the business enterprise.

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