Personal legal liability for business activities


Three college professors at MIT formed a business to speed transactions over the internet. They each put in an equal amount and will share all profits equally. They are concerned with not having personal legal liability for their business activities and want to raise capital to take the entity public. What business form should they use?

a. Sole proprietorship.

b. Partnership.

c. Corporation.

d. Division.

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Accounting Basics: Personal legal liability for business activities
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