Final answer:
The organization form that gives creditors maximum protection if Quality Environmental fails is a corporation, as it legally separates the company's assets from the personal assets of its owners, limiting their liability. The correct option is a.
Step-by-step explanation:
The form of organization that would provide creditors the maximum protection in the event that Quality Environmental fails and cannot pay its liabilities is a corporation. In a corporation, the company is legally seen as its own entity, which provides protection from liability to individual owners.
This means that the owners are not personally responsible for the company's debts, and therefore creditors can only claim the assets of the corporation, not the personal assets of its shareholders.
Other forms of business organization like sole proprietorships and partnerships, do not provide such a high level of protection for the personal assets of the owners. In a sole proprietorship, the business is not a separate entity from the owner, and therefore, the owner is responsible for all liabilities.
Partnerships provide some level of liability protection through a limited liability partnership, but this still doesn't offer the same level of protection as a corporation. The correct option is a.