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select all of the following businesses that can have limited liability.…

Question

select all of the following businesses that can have limited liability. \c\ corporation, private (close) corporation, non - profit corporation, multi - level marketing business, sole proprietorship, business - format franchise, \s\ corporation, partnership

Explanation:

Brief Explanations
  • "C" corporation: Owners (shareholders) have limited liability as the corporation is a separate legal entity.
  • Private (close) corporation: Also a corporation, so shareholders have limited liability.
  • Non - profit corporation: As a corporate entity, its members/directors typically have limited liability.
  • Multi - level marketing business: If structured as a corporation or LLC (though the options here are about the types given, but multi - level marketing can be part of a corporate structure with limited liability, but actually, many multi - level marketing businesses are set up in ways where if they are corporate - like, but more accurately, the corporate options here are the main ones. Wait, no, let's re - evaluate. Wait, the question is about the listed businesses. Let's correct:
  • "C" corporation: Limited liability for shareholders.
  • Private (close) corporation: Limited liability for shareholders (it's a type of corporation).
  • Non - profit corporation: Limited liability for its members/board (as it's a corporation).
  • "S" corporation: Shareholders have limited liability (it's a tax - designated corporation, still a corporation with limited liability for shareholders).
  • Business - format franchise: If the franchisee is a corporation or LLC, but the franchise as a business format - the franchisee (the one operating the franchise) can be a corporation (so if the franchisee is a corporate entity, it has limited liability. But the option is "Business - format franchise" - the franchisee's structure: if the franchisee is a corporation, then yes. But maybe the question considers that a business - format franchise can be operated as a corporation (so has limited liability).
  • Sole proprietorship: Unlimited liability, owner and business are the same.
  • Partnership: General partnership has unlimited liability for partners; limited partnership has some limited, but the option "Partnership" generally refers to general partnership, so unlimited.
  • Multi - level marketing business: If it's a sole proprietorship or general partnership, unlimited; if corporate, limited. But the options given: the corporate ones are definite.

So the correct ones are "C" corporation, Private (close) corporation, Non - profit corporation, "S" corporation, and Business - format franchise (if the franchisee is a corporate entity, which is common in business - format franchises as the franchisee often sets up a corporate structure to limit liability). Wait, but let's check standard business law:

  • "C" corp: Limited liability for shareholders. Correct.
  • Private (close) corp: Limited liability for shareholders. Correct.
  • Non - profit corp: Limited liability for its members (directors, etc., depending on the state, but generally, the corporation is liable, not the individuals). Correct.
  • "S" corp: Limited liability for shareholders. Correct.
  • Business - format franchise: The franchisee (the person/business operating the franchise) can be a corporation (so has limited liability). So this is correct.
  • Multi - level marketing business: If it's a sole proprietorship or partnership, no; if corporate, yes. But the option is just "Multi - level marketing business" - it's not a specific legal structure. So maybe this is not correct. Let's re - check:

Legal structures with limited liability: Corporations (C, S, private, non - profit) and business - format franchises (if the franchisee is a corporation/LLC). Sole proprietorship and general partnership have unlimited liability. Multi - level marketing business is a type of business, not a legal structure. So the corre…

Answer:

  • "C" corporation
  • Private (close) corporation
  • Non - profit corporation
  • "S" corporation
  • Business - format franchise