Which legal entity is paired with the owner(s) that do not have limited liability for the...

Which legal entity is paired with the owner(s) that do not have limited liability for the entity’s debts?

A. LLC - LLC member-mangers

B. Corporation – Shareholders

C. General Partnership – Partner

D. Limited Partnership - General partner

E. Both Corporation - Corporation and Limited Partnership - General partner.

F. A, C and D only

G. B and D only

Expert Solution

Solution: The answer is C. General Partnership – Partner

Reason: An unlimited liability entity generally includes general partners and sole-proprietors who are equally responsible for all liabilities incurred by the entity.

Option A. LLC - LLC member-mangers is not correct because LLC means Limited Liability Corporation whose liability is limited to its assets.

Option B. Corporation – Shareholders is not correct because even corporation was liable to pay debt but liability of shareholders is limited to the face value of shares holding.

Option D. Limited Partnership - General partner is not correct because partnership itself is limited partnership so their liability is limited.

Option E. Both Corporation - Corporation and Limited Partnership - General partner. is not correct because all the entity have limited liability

Option F. A, C and D only is not correct because Option C is correct and Option A, D are not correct.

Option G. B and D only is not correct because both entities have limited liability.

ekkarill92 answered 1 year ago

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