What is the most likely reason,from a financial liability perspective,for a corporation to be viewed as the most risk-aversive form of business entity?
A) It forms a distinct legal entity,liable for its own obligations.
B) Any entity that deals with a corporation may demand personal guarantees.
C) It shields directors from negligent acts of management.
D) It provides limited liability to the corporation's directors.

Question

Quizplus · Accepted Answer

Corporations are distinct legal entities, meaning they are liable for their own obligations, which limits the financial liability of shareholders and makes them risk-averse.

What Is the Most Likely Reason,from a Financial Liability Perspective,for