Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?
A) proprietorships and partnerships
B) corporations and proprietorships
C) limited partnerships and proprietorships
D) corporations and limited partnerships

Question

Quizplus · Accepted Answer

Corporations and limited partnerships are the only business organizations that limit the liability of some or all of their owners to the extent of their investment in the company. In a corporation, shareholders are not liable for the company's debts or financial obligations beyond their investment in the company. In a limited partnership, limited partners have limited liability and are only responsible for the debts of the partnership up to the amount of their investment, while the general partner assumes unlimited liability. Proprietorships and partnerships do not offer limited liability protections to their owners.

Which of the Following Business Organizations Limit the Liability of Some