Which of the following is the MOST compelling argument for incorporating a business?
A)to hire more employees
B)to avoid paying federal taxes
C)to protect the owners' personal assets
D)to complete minimal legal requirements

Question

Quizplus · Accepted Answer

Incorporating a business is important in order to protect the personal assets of the owners. When a business is incorporated, it becomes a separate legal entity, and its owners are not personally responsible for its debts and liabilities. This means that if the business faces a lawsuit or goes bankrupt, the owners' personal assets (such as their homes or savings accounts) will be protected. This is a compelling reason to incorporate a business, as it provides significant financial and legal protection to its owners. The other options (hiring more employees, avoiding federal taxes, completing minimal legal requirements) are not as strong reasons to incorporate a business.

Which of the Following Is the MOST Compelling Argument for Incorporating