Which legal entity is correctly paired with the party that bears the ultimate responsibility for paying the legal entity's liabilities?
A) LLC - LLC members
B) Corporation - Corporation
C) General Partnership - Partnership
D)Limited Partnership - General partner
E)Both B and D

Question

Quizplus · Accepted Answer

For corporations, the ultimate responsibility for paying the legal entity's liabilities lies with the corporation itself. Similarly, for limited partnerships, the general partner has the ultimate responsibility for paying the legal entity's liabilities. Therefore, option B and option D are both correct. Option A is incorrect because LLC members have limited liability and are not personally responsible for the legal entity's liabilities. Option C is incorrect because all partners in a general partnership are jointly and severally liable for the legal entity's liabilities.

Which Legal Entity Is Correctly Paired with the Party That