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What is the term for the business form where attorneys can be liable for each other's actions?

Corporation

Partnership

The correct term for the business form where attorneys can be liable for each other's actions is a partnership. In a partnership, each partner is not only responsible for their own conduct but can also be held liable for the negligent actions or misconduct of their fellow partners that occur in the course of the business. This aspect of shared liability is what differentiates partnerships from other business forms, where liability is typically more limited.

In contrast, a corporation offers limited liability to its shareholders, meaning that the owners' personal assets are generally protected from the corporation's debts and liabilities, and the corporation is treated as a separate legal entity. A sole proprietorship, on the other hand, is owned by a single individual who is personally liable for all the debts and obligations of the business, but it does not involve shared liability among multiple owners. An LLC, or Limited Liability Company, provides limited liability protection to its owners (members) similar to a corporation, limiting liability to their investment in the company and protecting them from personal liability for the actions of the LLC.

Thus, the unique characteristic of shared liability among attorneys working in a partnership makes this the most accurate answer to the question regarding the business form where attorneys are liable for each other's actions.

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Sole proprietorship

LLC

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