In the context of business structures, which legal entity provides its owners (shareholders) with ‘limited liability,’ meaning their personal assets are generally protected from the company’s debts and financial obligations?

💡 Explanation:

A corporation is a separate legal entity from its owners (shareholders). This separation grants the owners limited liability, meaning their personal assets are not at risk if the business incurs significant debt or faces legal action. Both Sole Proprietorships and General Partnerships typically expose the owners to unlimited personal liability.