A business owned by stockholders that is not personally liable for its debts is called:

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Multiple Choice

A business owned by stockholders that is not personally liable for its debts is called:

Explanation:
A corporation is a separate legal entity owned by stockholders and provides limited liability for its owners. This means the stockholders’ personal assets aren’t at risk for the corporation’s debts; their risk is limited to the money they’ve invested in the stock. Other forms don’t offer this same protection: a sole proprietorship or a general partnership involves personal liability for debts, and an LLC, while also offering limited liability, is owned by members rather than stockholders. So the description fits a corporation best.

A corporation is a separate legal entity owned by stockholders and provides limited liability for its owners. This means the stockholders’ personal assets aren’t at risk for the corporation’s debts; their risk is limited to the money they’ve invested in the stock. Other forms don’t offer this same protection: a sole proprietorship or a general partnership involves personal liability for debts, and an LLC, while also offering limited liability, is owned by members rather than stockholders. So the description fits a corporation best.

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