Question
If all of the individuals who own a business share unlimited liability for the business's losses, these individuals are part of a(n) "s" corporation general partnership private corporation. "C" corporation
Answer
4
(275 Votes)
Sioned
Elite · Tutor for 8 years
Answer
B. general partnership
Explanation
The question is asking us to identify the type of business structure where all owners share unlimited liability for the business's losses. Unlimited liability means that if the business incurs debt or faces lawsuits, the personal assets of the owners can be used to settle the business's debts. - An "S" corporation is a special structure that allows for pass-through taxation to the shareholders, but it does not involve unlimited liability for all owners; instead, it provides limited liability protection.- A general partnership is a business arrangement where two or more individuals share ownership and the responsibilities of running the business, including unlimited liability for business debts.- A private corporation is a business entity owned by private individuals or companies, and it typically offers limited liability to its owners.- A "C" corporation is a legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity, and it also provides limited liability protection.Given these definitions, the correct answer is the one that describes a business structure where all owners share unlimited liability.