BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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owners pay fewer taxes than owners of other forms of business.
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the business is subject to little government regulation.
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owners have limited liability for debt.
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owners have direct and immediate control over daily management of the business.
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Detailed explanation-1: -A corporation provides more personal asset liability protection to its owners than any other entity type. For example, if a corporation is sued, the shareholders are not personally responsible for corporate debts or legal obligations – even if the corporation doesn’t have enough money in assets for repayment.
Detailed explanation-2: -The advantages of the corporation structure are as follows: Limited liability. The shareholders of a corporation are only liable up to the amount of their investments. The corporate entity shields them from any further liability, so their personal assets are protected.
Detailed explanation-3: -As noted above, the owners of a company are generally not personally liable for either the commercial liabilities or tort liabilities of the company, and their personal assets may not be seized to satisfy those liabilities. However, there are a number of exceptions to this rule: Personal guaranties.