A firm with two or more owners who have unlimited liability is
A)a sole proprietorship.
B)a partnership.
C)a conglomerate.
D)a corporation.
E)a public company.

Question

Quizplus · Accepted Answer

A partnership is a type of business structure in which two or more owners share in the profits, risks, and liabilities of the company. In a partnership, each partner has unlimited liability, meaning they are personally responsible for all debts and legal issues that may arise, just as in a sole proprietorship. Therefore, option B is the correct answer. Option A, a sole proprietorship, refers to a business owned by one person with unlimited liability. Option C, a conglomerate, is a group of companies that operate in different industries. Option D, a corporation, is a separate legal entity with limited liability for its owners (shareholders). Option E, a public company is a type of corporation that issues stocks to the public to raise capital.

A Firm with Two or More Owners Who Have Unlimited