Joshua and Hubert are the co-owners of a shoe manufacturing company. They have a disagreement over company policies and business methods. Following the discord, Joshua withdraws from the company and comes under the obligation to pay a sum of $10,000-the debts of the firm that are due at the time of his withdrawal. In the given scenario, Joshua and Hubert most likely _____.
A) have a general partnership
B) own an S corporation
C) own a statutory close corporation
D) have a limited liability partnership

Question

Quizplus · Accepted Answer

In a general partnership, partners are personally liable for the debts of the business, which aligns with Joshua's obligation to pay the firm's debts upon withdrawal.

Joshua and Hubert Are the Co-Owners of a Shoe Manufacturing