Which business organization type protects owners from personal vicarious liability for torts committed by employees?

The correct choice is the type of business organization that provides owners with protection against personal vicarious liability for torts committed by their employees: corporations, limited liability companies (LLCs), and limited liability partnerships (LLPs).

In these types of organizations, the structure is designed to create a legal distinction between the business entity and its owners. This means that if an employee commits a tort during the course of their employment, the liability typically falls on the business entity itself rather than the individual owners or shareholders. This shield against personal liability is a crucial feature that serves to encourage investment and entrepreneurship, as individuals can partake in business activities without risking their personal assets.

In contrast, sole proprietorships and general partnerships do not provide this protective layer. In a sole proprietorship, the owner is personally liable for all debts and obligations of the business, including any torts committed by employees. Similarly, in a general partnership, all partners share full personal liability for the actions of the partnership and its employees. As a result, these structures do not effectively shield owners from risk in the same way that corporations, LLCs, and LLPs do.

Thus, understanding the liability protections offered by different business organization types is essential for making informed decisions about the structure