Will and Bill love the sun, water and surfboards. The two friends therefore decided to create together a business of rental of surfboards, paddle and inflatable equipment in California. the will and the invoice will equally share the decision-making and profit or loss of the business. what kind of business did they start if they are both personally liable for the debts of the business? a. sole proprietorship b. limited liability company C. company d. limited liability company e. partnership in general
Answer 1
E. General Partnership Explanation:
answer 2
The answer is: Sole proprietor Explanation: If only one (will or bill) is responsible for decisions about the business and is personally liable for all business debts, then the only possible answer is sole proprietor. In the company and in the company, the owners (shareholders or partners) have a limited liability for the debt of the company. In a general partnership, all the partners are responsible for the debts of the partnership.
answer 3
The correct answer is the letter “E”: Society in general.
Explanation: A partnership is the type of business formed by at least two individuals, where the two share all assets, profits, financial and legal responsibilities, and decisions about the direction the business structure will take. . Partners are said to have unlimited liability, both personal and company assets count against any liability the partners have to deal with.
answer 4
It is a general partnership. A general partnership is formed when business partners share the responsibilities and profits made through the general partnership. Everything is divided equally to avoid arguments or conflicts. The only downside to partnerships is that they hold everyone involved accountable. If a debt is created by one partner, the other partner is also responsible for the debt.