Asked by Mariah Yniguez on Jul 20, 2024
Verified
A major advantage of the corporate form of business organization is the limited personal liability of the owners.
Corporate Form
A legal structure for businesses characterized by limited liability for its shareholders, perpetual succession, and the potential to raise capital through the sale of stock.
Personal Liability
The legal responsibility individuals have to fulfill the obligations of debt or other legal responsibilities personally, risking personal assets.
- Acknowledge the implications of business formations on company processes and liability exposure.
Verified Answer
ML
Malka LebowitzJul 24, 2024
Final Answer :
True
Explanation :
In a corporation, the owners (shareholders) are not personally liable for the debts or actions of the company. Their liability is limited to the amount of their investment in the corporation.
Learning Objectives
- Acknowledge the implications of business formations on company processes and liability exposure.
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