Oscar Patel and Jon O'Keefe own and operate a janitorial cleaning service. Patel bought a new computer, which he plans for the company to use to track its customers and suppliers, and for making business forecasts. Patel plans on using an installment plan to pay for the computer. O'Keefe was not asked if he thought the company needed a computer and was unhappy when he learned that he and Patel are both liable for the payments for the computer. Patel and O'Keefe have which of the following type of business?
A) general partnership
B) private corporation
C) joint partnership
D) limited partnership

Question

Quizplus · Accepted Answer

The scenario describes a business owned and operated by two individuals, which is a characteristic of a general partnership. Additionally, the fact that both Patel and O'Keefe are liable for the computer payments indicates that they share in the profits and losses of the business, which is another hallmark of a general partnership.

Oscar Patel and Jon O'Keefe Own and Operate a Janitorial