Question

sRegal Signs​, ​Inc., needs​ funds, and Megan Regal​, the​ president, has asked you to consider investing in the business. Answer the following questions about the different ways that Regal might organize the business. Explain each answer: what forms of organization will enable the owners or regal signs to limit their risks of loss to the amounts they have invested in the business?

Answer 1

Regal Signs, Inc. can limit its risks of loss by organizing the business as a limited liability company (LLC) or a corporation. An LLC combines the benefits of a partnership and a corporation, while a corporation is a separate legal entity owned by shareholders. These forms of organization protect the owners' personal assets and limit their liability to the amount invested in the business.

Step-by-step explanation:

Regal Signs, Inc. can limit its risks of loss by organizing the business as a limited liability company (LLC) or a corporation. In these forms of organization, the owners' personal assets are protected and their liability is limited to the amount they have invested in the business.

An LLC is a flexible form of organization that combines the benefits of a partnership and a corporation. The owners, called members, are not personally liable for the company's debts or liabilities. A corporation, on the other hand, is a separate legal entity that is owned by shareholders. The shareholders' liability is limited to the amount they have invested in the company.

By organizing Regal Signs, Inc. as an LLC or a corporation, the owners can protect their personal assets and limit their risk of loss in the business.

Learn more about organizing a business