A business owner is concerned about protecting personal assets such as a home and savings account from potential business lawsuits. What form of business ownership provides limited liability protection for its owners?

A corporation is legally separate from its owners, so shareholders generally are not personally responsible for the corporation’s debts or lawsuits. Their financial risk is usually limited to what they invested in the business, helping protect personal assets such as a home or savings. A sole proprietorship and general partnership generally do not provide this protection.

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