Which business structure is owned by shareholders and offers limited liability?

The business structure that is owned by shareholders and offers limited liability is the corporation. In a corporation, ownership is divided among shareholders, who invest capital and, in return, own a portion of the company. One of the key features of a corporation is limited liability, meaning that the financial responsibility of the shareholders is limited to the amount they invested in the company. This protects personal assets from being seized to cover the corporation's debts or liabilities, making it a desirable structure for many investors.

In contrast, a partnership does not provide limited liability, as partners can be personally liable for business debts. A cooperative is typically owned and operated for the benefit of its members, who share profits and responsibilities but may not have the same limited liability protections unless structured as a corporation. A sole trader operates as an individual, meaning they are fully liable for any debts incurred by the business, lacking the limited liability feature that defines a corporation.