Which of the following statements is generally not true for an investor who faces unlimited liability on an investment?

Question

Quizplus · Accepted Answer

Unlimited liability implies that the investor is personally responsible for all of the debts and obligations of the firm. As a result, they would not be subject to double taxation as they are not a separate entity from the business. However, they may own stock in the firm, have no partners, and be responsible for managing the firm.

Which of the Following Statements Is Generally Not True for an Investor