Asked by Jasmine Agosto on Jul 11, 2024
Verified
Xavier starts an investment management firm along with his friend Abdul.They decide to equally share the profits and have unlimited liability for the debts of their business.This firm is an example of a(n) _____.
A) general partnership
B) S corporation
C) sole proprietorship
D) limited partnership
E) C corporation
Unlimited Liability
Unlimited liability means that the owners of a business are personally responsible for the entire amount of debt and obligations of the business, potentially risking their personal assets.
- Comprehend the notions of unlimited and limited liability in the context of business entities.
Verified Answer
KR
Kiera RiveraJul 14, 2024
Final Answer :
A
Explanation :
A general partnership is characterized by equal profit sharing among partners and unlimited liability for business debts, which matches the description of Xavier and Abdul's business arrangement.
Learning Objectives
- Comprehend the notions of unlimited and limited liability in the context of business entities.
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