In which form of Business, owners have limited liability?
Correct answer: C. joint stock company
- A. sole proprietorship
- B. partnership
- C. joint stock company
- D. none of the aboveBusiness Formation
Explanation
A joint stock company is a separate legal entity, so its shareholders generally risk only the amount they invested. Sole proprietors and ordinary partners normally have unlimited personal liability.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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