For these types of organization, no distinction is made between business and personal assets.
A) Sole proprietorship
B) General partnership
C) Limited partnership
D) Both A and B

Question

Quizplus · Accepted Answer

Both sole proprietorship and general partnership do not make a distinction between business and personal assets. In a sole proprietorship, the owner is solely responsible for all assets and liabilities of the business, which are treated as part of their personal assets. In a general partnership, all partners contribute assets and share profits and losses, but they are also jointly responsible for all debts and liabilities, and their personal assets may be used to settle business obligations. In contrast, a limited partnership has both general partners who manage the business and are personally liable, and limited partners who only invest money and are not personally liable beyond their investment.

For These Types of Organization, No Distinction Is Made Between