Question

Owners of​ ______ have limited liability. A. corporations B. ​partnerships, proprietorships, and corporations C. proprietorships and partnerships D. partnerships and corporations

Answer 1

Answer: Option (C)

Step-by-step explanation:

Limited liability organizations are known as the organizational structure under which the individual's, i.e. owners are not solely liable for organization's liabilities and debts. The limited liabilities organization are known to be the hybrid system which mostly collaborates the attributes of the organization with sole proprietorship.

Answer 2

Answer: Option A

Explanation: In the eyes of law, a corporation is considered as as a separate legal entity. Separate legal entity refers to an entity which is considered to be separate from its owners or other such entity in respect of any accountability.

Therefore, in case of any default leading to liquidation the personal assets of owners could not be considered for repayment purposes. However, this provision applies only until the owners are not proved to be any part of fraud.