A general partnership is best defined as a business owned by:
A) A single individual who desires limited liability for the firm's debts.
B) One or more individuals who are each totally responsible for the debts of the entity.
C) Multiple individuals, 80 percent of whom enjoy limited liability.
D) Two or more individuals, each of whom has limited liability for the firm's debts.
E) Two or more individuals, only one of whom has unlimited liability for the firm's debts.

Question

Quizplus · Accepted Answer

A general partnership is characterized by the fact that each partner is fully responsible for the debts and obligations of the business. This means that each partner has unlimited liability, which contrasts with structures that offer limited liability to some or all of the owners.

A General Partnership Is Best Defined as a Business Owned