Which two types of business structures offer limited liability?

The option that states LTD (Limited Company) and PLC (Public Limited Company) provides limited liability is correct because these business structures specifically offer protection to their owners (shareholders) against personal financial loss beyond their initial investment in the company. This means that if the business incurs debts or faces legal challenges, the personal assets of the shareholders are not at risk.

LTD companies are privately held businesses where the ownership is limited to a few individuals, while PLCs are companies that can sell shares to the public, allowing them to raise capital more easily. In both cases, the limited liability aspect is a significant advantage, fostering an environment for investment while safeguarding personal assets.

The other options do not appropriately represent structures that typically provide limited liability. Sole proprietorships and partnerships expose owners to unlimited liability, meaning personal assets can be used to settle any business debts. Similarly, while LLCs do provide limited liability, non-profits do not operate on a profit-making basis and are mainly focused on fulfilling a mission without distributing profits to owners, which complicates the notion of ownership and liability. Finally, a corporation does have limited liability, but a franchise operates under a different structure where liability can vary widely depending on the nature of the contract with the franchisor.