Question

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As the business grew, she realized that she did not want to be personally liable for the business's debts and wanted her business accounts to be separate from her personal accounts. Therefore, she should have:(A) Incorporated Stirya(B) Found limited partners(C) Created a general proprietorship(D) Created an S proprietorship(E) Franchised the business

Answer 1

Answer:

Option "A" is the correct answer to the following statement.

Incorporated Stirya

Explanation:

Incorporation means the formal process of developing a business or a corporate entity.

The benefits of a company's establishment include limited liability, transferable securities, automatic inheritance, independent assets, sue capacity, versatility, and sovereignty.

In this case, Linda does not want to personal liability for business debts and wants to create a separate entity from the business so she chooses incorporation business.