Which of the following individuals have unlimited liability for a firm's debts based on their ownership interest?
A) Only general partners
B) Only sole proprietors
C) All stockholders
D) Both limited and general partners
E) Both general partners and sole proprietors

Question

Quizplus · Accepted Answer

General partners and sole proprietors have unlimited liability for a firm's debts based on their ownership interest, meaning they are personally responsible for any debts incurred by the firm. Limited partners and stockholders have limited liability and are not personally responsible for the debts of the firm beyond their investment.

Which of the Following Individuals Have Unlimited Liability for a Firm's