Among the many decisions that come with beginning a new business venture is the selection of exactly what kind of business entity would be the best fit for the circumstances. There are a wide variety of different forms to choose between when establishing a new business, each with distinct characteristics and uses. By creating such legal structures, it requires a certain level of responsibility from business owners, but also provides limited liability protection.

As you consider the selection of appropriate business entities, respond to the following:

• Should business owners be able to use business entities in order to shield themselves from personal liability for business obligations and debts? If this is acceptable, to what extent should it be acceptable?
• How might owners of businesses abuse the ability to limit their personal liability? ("Piercing the corporate veil")
• Which is more advantageous to protect- the business or the consumer? Find one example where you believe the business should be protected and one example where the consumer deserves protection.

Answer rating: 100% (QA)

The Balancing Act Protecting Businesses and Consumers in the Age of Limited Liability The ability to form business entities has revolutionized commercefostering entrepreneurship and economic growthBut ... View the full answer