Medical Office Law and Liability
Chapter 1 -
Study Question Responses
- The owner of a sole proprietorship has unlimited personal liability and does not have the tax advantages of an LLC or a corporation. There is no legal separation between you and your business in a sole proprietorship.
- Unlike a partnership, a person’s interest in a corporation is represented by stock, and the risk for the corporation’s debt does not extend past the amount invested; except for very rare situations (called piercing the corporate veil), the personal assets of a corporation’s shareholder are not at risk to cover corporate liability.
- A physician may be tempted to achieve maximum financial reward by not ordering tests or procedures or prescribing medicine.