In which form of organization, the liability of the owners is limited to the amount invested in the business? A. Corporation B. Sole proprietorship C. Partnership D. Limited liability partnership (LLP)
Question
In which form of organization, the liability of the owners is limited to the amount invested in the business? A. Corporation B. Sole proprietorship C. Partnership D. Limited liability partnership (LLP)
Solution
The form of organization where the liability of the owners is limited to the amount invested in the business is A. Corporation. In a corporation, the owners (shareholders) are not personally liable for the debts and obligations of the business. Their liability is limited to the amount they have invested in the company.
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