Answered

If a business is unable to pay its debts, creditors can claim the assets of the business, but they cannot claim the non-business assets of the owner. For which type of business structure is this true?

A. A limited liability company
B. A sole proprietorship
C. A general partnership
D. An independent contractor



Answer :

GinnyAnswer

Final answer:

Creditors can only claim a limited liability company's business assets, not the owner's personal assets.


Explanation:

Limited Liability Company is the type of business structure where creditors can only claim the assets of the business if it is unable to pay its debts, without having access to the nonbusiness assets of the owner. In a limited liability company, the personal assets of the owner(s) are protected from being seized to settle business debts or liabilities.


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