Malcom Bourek: The corporation is responsible for the corporation's debt. Normally, there is a financial officer who pays the bills. If the corporation fails and goes bankrupt, people simply do not get paid. If the company is bankrupt and there is money, a judge appoints someone to pay according to a plan. The shareholders or bonds holders have limited personal protection thus reason why they enter into corporation.Like owners of partnerships or sole proprietorships, LLC owners report business profits or losses on their personal income tax returns; the LLC itself is not a separate taxable entity. Like owners of a corporation, however, all LLC owners are protected from personal liability for business debts and claims -- a feature known as "limited liability." This means that if the business owes money or faces a lawsuit, only the assets of the business itself are at risk. Creditors usually can't reach the personal assets of the LLC owners, such as a house or car. (Both LL! C owners and corporate shareholders can lose this protection by acting illegally, unethically, or irresponsibly.)...Show more
Marion Wieboldt: Is this homework? No one here will do your homework for you. Just google each one of those terms and read up on them. You should come to know the answer very quickly.
Wilmer Skidmore: The corporation.
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