Final answer:
A Limited Liability Company (LLC) is the business form that offers limited liability protection of a corporation for its owners, to the extent of their investment. Thus, the correct option is C.
Step-by-step explanation:
The business form that provides limited liability protection of a corporation to its owners, to the extent of their investment, is a Limited Liability Company (LLC). This means that if the business were to face bankruptcy or lawsuits, the personal assets of the owners (such as homes, cars, and personal bank accounts) are usually protected, and the financial risk is limited to the amount they have invested in the LLC.
Unlike a sole proprietorship or a general partnership, where the owners are fully liable for the business debts, an LLC offers an important layer of security which is similar to the protection shareholders have in a corporation.
An LLC combines the tax efficiencies and operational flexibility of a partnership with the liability protection of a corporation. Sole proprietorships and partnerships do not provide limited liability protection to their owners; they are personally responsible for all debts and liabilities of the business.
Cooperatives also typically involve shared ownership and decision-making, but the personal liability protection can vary depending on the cooperative's legal structure and the laws of the state in which it is organized, so they often do not provide the same level of protection as an LLC or a corporation.