Zach and Mac own an auto repair business that they operate as co-owners. Both take an active role in the management of the business, and each accepts unlimited liability. Zach and Mac operate as a __________.
A) joint venture
B) general partnership
C) limited partnership
D) cooperative

Question

Quizplus · Accepted Answer

Zach and Mac operate as a general partnership since they both take an active role in the management of the business and accept unlimited liability. A joint venture typically involves a temporary partnership for a specific project, a limited partnership has both general and limited partners with limited partners not taking an active role in management, and a cooperative involves a group of individuals working together to achieve a common goal.

Zach and Mac Own an Auto Repair Business That They