Question

social science academic (part b) pva (acc.ed) (fa25) - activities
legal forms of business quiz
social science academic (part b) pva (acc.ed) (fa25) / module 3: public and private sectors

1. a type of business organization that is treated as a legal person and whose owners (shareholders) enjoy limited liability is a

sole proprietorship
corporation
partnership
none of the above

Explanation:

A corporation is a legal entity separate from its owners (shareholders), meaning it is treated as a legal person. Shareholders have limited liability, meaning their personal assets are not at risk for the corporation's debts beyond their investment. Sole proprietorships and partnerships do not have separate legal personality, and their owners have unlimited liability.

Answer:

B. corporation