Business partners Melinda and Joseph are discussing which legal structure to choose for their business. They are leaning toward creating a corporation. What is one advantage of a corporation for these partners? (1 point) Responses They would have lower setup costs. They would have lower setup costs. They would follow fewer government regulations. They would follow fewer government regulations. They would have protection from personal liability. They would have protection from personal liability. They could set the business up without assistance from a lawyer. They could set the business up without assistance from a lawyer.

Question

Business partners Melinda and Joseph are discussing which legal structure to choose for their business. They are leaning toward creating a corporation. What is one advantage of a corporation for these partners? (1 point) Responses They would have lower setup costs. They would have lower setup costs. They would follow fewer government regulations. They would follow fewer government regulations. They would have protection from personal liability. They would have protection from personal liability. They could set the business up without assistance from a lawyer. They could set the business up without assistance from a lawyer.

Answer 1

They would have protection from personal liability.

Answer 2

One advantage of a corporation for Melinda and Joseph is that they would have protection from personal liability.

Answer 3

One advantage of a corporation for the business partners Melinda and Joseph is that they would have protection from personal liability.

To find this information, you can consider the characteristics of different legal structures for businesses. A corporation is a separate legal entity from its owners, meaning that the owners (also known as shareholders) have limited liability for the debts and obligations of the corporation. This means that in the event of a lawsuit or bankruptcy, their personal assets would generally be protected and only the assets of the corporation would be at risk. This can provide a sense of security for the owners and helps to safeguard their personal finances.

It's important to note that while a corporation provides limited liability protection, there are still some circumstances where personal liability may apply, such as in cases of fraud or other illegal activities.

Other advantages of a corporation could include easier access to capital through the sale of stocks, potential tax benefits, and the ability to transfer ownership. However, in this scenario, the question specifically asks for one advantage, and the protection from personal liability would likely be the most relevant and significant advantage for Melinda and Joseph.