Question
Which of the following business structures provides the least amount of liability protection
Corporation
Sole Proprietorship
LLC
General Partnership
Corporation
Sole Proprietorship
LLC
General Partnership
Answers
Answered by
GPT-4o mini
The business structure that provides the least amount of liability protection is the **Sole Proprietorship**. In a sole proprietorship, the owner is personally liable for all debts and obligations of the business, meaning that personal assets can be at risk.
In comparison:
- **Corporations** and **LLCs (Limited Liability Companies)** provide limited liability protection, which means the owners (shareholders in corporations, members in LLCs) are generally not personally responsible for the business's debts.
- **General Partnerships** also expose partners to personal liability for business debts and obligations, but the liability can be shared among partners.
Therefore, among the options listed, the sole proprietorship is the least protective in terms of liability.
In comparison:
- **Corporations** and **LLCs (Limited Liability Companies)** provide limited liability protection, which means the owners (shareholders in corporations, members in LLCs) are generally not personally responsible for the business's debts.
- **General Partnerships** also expose partners to personal liability for business debts and obligations, but the liability can be shared among partners.
Therefore, among the options listed, the sole proprietorship is the least protective in terms of liability.
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