Namra and her brother, Faisal, took over the family$-$owned pet store when her father retired. Sales have been sluggish due to a larger pet store opening in the area. Namra is panicked because the pet store owes various creditors $$25,000.$ If the business closes, she will have to sell her car to pay back the debt. Faisal tells her, "Don't worry! There is no way the creditors can come after your personal property." How can Faisal be so sure?

Question $24$ options:

Faisal knows that his father formed the business as a sole proprietorship, which means they have limited liability and will not need to pay back business debts.

Faisal knows that companies formed as corporations only have to pay back business debts over $$30,000.$

Faisal knows that the company is a partnership, which means they have limited liability and will not need to pay back business debts.

Faisal knows that the company is owned as a corporation, which means that he and Namra have limited liability and will not need to pay back business debts.