Which of the following describes a primary difference between corporations and unincorporated businesses?(1 point)ResponsesThe liability of owners is limited.The liability of owners is limited.Shareholders may have to liquidize assets to cover failures of the corporation.Shareholders may have to liquidize assets to cover failures of the corporation.Two or more members are required to form a corporation.Two or more members are required to form a corporation.Decisions are made by a board of directors.Decisions are made by a board of directors.

Answer 1

The primary difference between corporations and unincorporated businesses is that the liability of owners is limited in corporations, while it is not in unincorporated businesses. In unincorporated businesses, such as sole proprietorships or partnerships, owners are personally liable for the debts and obligations of the business. In contrast, in a corporation, shareholders typically have limited liability, meaning they are not personally responsible for the corporation's debts beyond their investment in shares.