Al Tomlin and Wilson Nkata recently closed their frame shop because they could not pay the outstanding business debts. Since Tomlin and Nkata are both liable for the debts, what sort of business do they have?
A) general partnership
B) private corporation
C) open corporation
D) limited partnership

Question

Quizplus · Accepted Answer

In a general partnership, all partners hold equal responsibility for the debts and liabilities of the business. Therefore, both Tomlin and Nkata are liable for the outstanding business debts, leading to the closure of their frame shop. Private and open corporations have limited liability, while limited partnerships have both general and limited partners with different levels of liability.

Al Tomlin and Wilson Nkata Recently Closed Their Frame Shop