Will and Bill both enjoy sunshine, water, and surfboards.Thus, the two friends decided to create a business together renting surfboards, paddle boats, and inflatable devices in California.Will and Bill will equally share in the decision making and in the business profits or losses.Which type of business did they create if they both have full personal liability for the firm's debts?
A)Sole proprietorship
B)Limited partnership
C)Corporation
D)Joint stock company
E)General partnership

Question

Quizplus · Accepted Answer

A general partnership involves two or more individuals who share in the management, profits, and liabilities of a business. In this case, Will and Bill equally share decision-making and profits or losses, and they both have full personal liability for the firm's debts, which is characteristic of a general partnership.

Will and Bill Both Enjoy Sunshine, Water, and Surfboards