Caleb Brown Has Been the Sole Owner of a Bicycle

question 2

Multiple Choice

Caleb Brown has been the sole owner of a bicycle sales and repair shop for several years.Which of the following business types would limit Caleb's personal liability exposure to the entity's debts?

• A)partnership
• B)limited-liability company
• C)sole proprietorship
• D)limited-liability partnership

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Definitions:

Reasonable Care

A legal standard that requires individuals to act with the degree of caution and concern for the safety of others that a reasonably prudent person would in similar circumstances.

Negligence Standard

A legal criterion used to evaluate whether a person's conduct lacks reasonable care, potentially leading to liability for damages caused by such carelessness.

Tort Law

The branch of law that deals with civil wrongs, personal or property damage, and other injuries for which courts can impose liability.

Tort Liability

Legal responsibility that arises from civil actions or wrongs not based on contracts, such as negligence or defamation.