The reason a professional such as a lawyer or doctor would incorporate his/her business is

(1) to protect his/her assets with unlimited liability.

(2) to be assured that another professional firm would not take over and make decisions, similar to a hostile takeover.

(3) to protect his/her other assets with limited liability.

(4) to comply with the law because insurance companies require that they be corporations.

Question

Wesley Silva

Business

18 November, 15:03

The reason a professional such as a lawyer or doctor would incorporate his/her business is

(1) to protect his/her assets with unlimited liability.

(2) to be assured that another professional firm would not take over and make decisions, similar to a hostile takeover.

(3) to protect his/her other assets with limited liability.

(4) to comply with the law because insurance companies require that they be corporations.

+2

Answers (1)

Know the Answer?

Nikolai Robinson · Answer 1

(3) to protect his/her other assets with limited liability.

Explanation:

The reason a professional such as a lawyer or doctor would incorporate his/her business is to protect his/her other assets with limited liability. Limited liability will be very good option for the professionals such as lawyer and doctors because it provides a sense of security. Limited liability secures the owners from any kind of loss if happens in business. Although, it is obviously much costlier but personal assets of the owners are also secured in the case if the business goes bankrupt therefore, it is the very best option for the professionals.