Question

Which type of business does not hold owners accountable for the debts of

the business?
OA. Sole proprietorship
OB. LLC
OC. Partnership
A
OD. Private company

Answer 1

An LLC does not hold its owners personally accountable for the business's debts, providing them with limited liability protection, unlike sole proprietorships and partnerships.

Step-by-step explanation:

The type of business that does not hold owners accountable for the debts of the business is a Limited Liability Company (LLC). Unlike sole proprietorships and partnerships, where the owners' personal assets can be used to pay for the business debts, LLCs provide their owners with limited liability protection. This means that LLC owners are typically not personally responsible for business debts and liabilities.

Answer 2

Limited Liability Company (LLC)

Step-by-step explanation:

A limited Liability Company (LLC) is a business structure in the United States that protects its owners from the personal responsibility for its repayment of debts and liabilities. It is a hybrid entity that has the characteristics of a corporation, partnership and sole proprietorship. The regulation of LLC's varies from one state to another. An entity or individual can be a member of an LLC with notable exceptions from banks and insurance companies. The primary reason for registering a business under LLC is to limit the personal liability of the owners as well as the partners. LLC may have some attractive features but they also possess some great disadvantages as well. Depending upon the state law, an LLC may be dissolved upon the death or bankruptcy of a member.