Which structure allows for multiple owners while limiting personal liability in agribusiness?

The correct answer is the limited liability company (LLC) because it combines the benefits of a corporation and a partnership. An LLC allows for multiple owners, known as members, which means that several individuals can invest in and operate the agribusiness together. Importantly, the structure of an LLC provides limited liability protection, meaning that the personal assets of the members are typically safeguarded from any debts or legal obligations incurred by the business. This feature is crucial for agribusiness, where financial risks and liabilities can be significant.

In contrast, a sole proprietorship is owned by a single individual, which does not meet the criteria of having multiple owners. It also does not offer any personal liability protection, meaning the owner's personal assets could be at risk if the business faces debt or legal issues. A corporation does provide limited liability protection and allows for multiple shareholders, but it typically involves more complex regulations and formalities than an LLC. Partnerships have multiple owners but do not generally provide the same level of personal liability protection as an LLC; partners can be held responsible for the debts and liabilities of the business, which could be a significant risk in the agribusiness sector. Therefore, the LLC structure is ideal in this context as it balances flexibility in ownership with essential