Aaliyah is concerned about keeping her own assets separate from risks associated with her business, What legal action would protect her personal assets from her business liabilities?

Question

A. incorporation
B. investments
C. Contract
D. compliance

Answer 1

The correct answer is A. incorporation.

Incorporating a business creates a distinct legal entity, which helps protect the owner's personal assets from the liabilities and debts incurred by the business. This means that in most cases, if the business faces legal issues or financial debts, Aaliyah’s personal assets would typically not be at risk.