Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:
A)sole proprietorship.
B)general partnership.
C)limited partnership.
D)corporation.

Question

Quizplus · Accepted Answer

A corporation is a legal entity that is separate from its owners. This means that the business can own assets, enter into contracts, and be sued, without the owners (in this case, Todd and Jorge) being personally liable for any debts or legal issues. As a result, organizing the business as a corporation would allow Todd and Jorge to protect their personal assets in case the business fails.

Todd and Jorge Have Considered Starting Their Own Business but Are