GK
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Dan has $5, 000. He wants to invest his money in the type of business that will not take his personal assets if the business fails. In which type of business should he invest?
|
|
corporation
|
|
|
partnership
|
|
|
proprietorship
|
|
|
None of the above
|
Explanation:
Detailed explanation-1: -The correct answer is d. In law, it is regarded as having a separate existence from its owners. Limited liability company means that the owners are not personally liable anymore of the company’s debts because that company has separate existence from them.
Detailed explanation-2: -Partnerships. In a Partnership, two or more people share ownership of a single business. Like proprietorships, the law does not distinguish between the business and its owners.
There is 1 question to complete.