Question

Is the public served by the availability of business formats which protect individuals from personal liability? Identify and Describe the alternatives? Do you agree with the availability of business formats that protect individuals from personal liability? Defend your position.

Make at least 100-150 words, thank you.

Answer 1

No, the public served by the availability of business formats which protect individuals from personal liability. The available business structures are not competent enough to provide persona liability to the individuals. The conventional business formats include

• Sole proprietorships,

• partnerships,

• Limited partnerships

• LLC corporation structure and

• Non-corporate structures.

These structures are not efficient enough to ensure personal liability because most of the business structures plan for future expansion instead of providing accountability.

Alternatives are mentioned below:

• Contractual liability: Contractual liability signifies a situation when a person agrees to do some task on behalf of another person through a valid and legal contract. It includes service contracts and business loans. Contractual liability endures personal liability.

• Tort liability: Tort liability depicts an obligation which a person compels to do because of his tortuous action while staying in a contract. The person is entirely liable for personal liability.  

No, I do not agree with the availability of business formats that protect individuals from personal liability. Most of the business formats are not reliable enough to maintain personal liability. All the forms are developed based on some informed decision instead of a legal, contractual obligation.