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
E) to avoid lots of paperwork

Question

Quizplus · Accepted Answer

Incorporating a business provides liability protection to the owners. This means that their personal assets are protected from any liabilities or debts incurred by the business. This is the most compelling argument for incorporating a business, as it provides significant financial security to the owners. Hiring more employees or avoiding taxes may be reasons to consider incorporation, but they are not as important as protecting personal assets. Completing minimal legal requirements and avoiding paperwork should not be the primary reasons for incorporating a business.

Which of the Following Is the MOST Compelling Argument for Incorporating