Which of the following forms of business organization have unlimited liability?
I. Corporation
II. General partnership
A) Only statement I is correct
B) Only statement II is correct
C) Both statements I and II are correct
D) Neither statement I nor II is correct

Question

Which of the following forms of business organization have unlimited liability? 
I. Corporation
II. General partnership
A) Only statement I is correct
B) Only statement II is correct
C) Both statements I and II are correct
D) Neither statement I nor II is correct

Quizplus · Accepted Answer

Only statement II is correct. General partnership is a form of business organization in which partners have unlimited personal liability for the debts and obligations of the partnership. Corporations have limited liability, meaning that shareholders' personal assets are typically not at risk for the debts and obligations of the corporation.

Which of the Following Forms of Business Organization Have Unlimited