Which of the following run the risk of unlimited personal liability?
A) Partners in a limited partnership
B) Partners in a general partnership
C) Shareholders in S Corporations
D) Corporate shareholders

Question

Quizplus · Accepted Answer

Limited partners who do not participate in management and shareholders in a corporation may lose their investment if the business fails. However, they have no further liability to creditors of the business or to victims of torts that are attributable to the business. In contrast, partners in a general partnership not only may lose their investment but also may be required to pay partnership debts from personal assets. Sole proprietors have the same risk of unlimited personal liability.

Which of the Following Run the Risk of Unlimited Personal