Limited Liability Company is a business structure where owners have limited personal liability for the debts and actions of the ___.

• A. The Government
• B. The Company
• C. The Partnership
• D. The Individuals

Answer: (B)

The core idea here is that an LLC creates a separate legal entity from its owners. Because the company is a distinct entity, it shoulders the debts and legal responsibilities of the business, not the individual owners. That separation is what gives owners limited personal liability—their personal assets aren’t at risk for the company’s debts or lawsuits, beyond any personal guarantees or improper actions. So the term that fits is the company. It isnures that the business exists independently from the people who own it. The government or individuals aren’t the entity whose debts and actions the owners are protected from, and a partnership doesn’t provide the same ongoing shield for all partners.