Polly receives $1000 for her birthday. She wants to earn money without having personal liability. She choses to buy stock in a cleaning business. Polly has invested in which business organization?

Answer 1

Polly has invested in a corporation. By purchasing stock in a cleaning business, she becomes a shareholder in that corporation. One of the key advantages of investing in a corporation is that shareholders typically have limited liability, meaning they are not personally responsible for the debts and liabilities of the business, which aligns with her desire to earn money without personal liability.