Nutty Dough is a small chain of donut shops currently owned and operated by a group of seven partners. The owners think that their chain has the potential for rapid growth, but several of the partners are concerned about the growing financial risks that will accompany this growth. One way the partners could deal with this problem would be to incorporate their business.

Question

Quizplus · Accepted Answer

By incorporating their business, the partners can limit their personal financial liability and separate their personal assets from the company's assets. This can help mitigate the risks associated with rapid growth.

Nutty Dough Is a Small Chain of Donut Shops Currently