Q:

Ronnie has just created her own publishing company and, as the sole owner, she wants to protect her personal assets in a simple business structure. Which of the following would be an appropriate choice?

A) Limited liability company
B) Sole proprietorship
C) Corporation
D) Limited partnership

A:
The correct answer is a.
A Limited Liability Corporation (LLC) will offer Ronnie protection for her personal assets if the company should fail. She is currently operating as a sole proprietor, with no liability protection. Ronnie does not qualify for either a limited partnership or general partnership since both require a minimum of two people. The LLC also has a more simplified business structure than a corporation and is, thus, easier to administer.

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RELATED TERMS
  1. Limited Liability Company - LLC

    A corporate structure whereby the members of the company cannot ...
  2. Company

    An entity formed to engage in a business. A company may be organized ...
  3. Sole Proprietorship

    The sole proprietor is an unincorporated business with one owner ...
  4. Firm

    A firm is a business organization, such as a corporation, limited ...
  5. Limited Liability

    A type of liability that does not exceed the amount invested ...
  6. Business Liability Insurance

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