Which Legal Entity Is Correctly Paired with the Party That

question 8

Multiple Choice

Which legal entity is correctly paired with the party that bears the ultimate responsibility for paying the legal entity's liabilities?

• A) LLC - LLC members.
• B) Corporation - Corporation.
• C) General Partnership - Partnership.
• D) Limited Partnership - General partner.
• E) Corporation - Corporation and Limited Partnership - General partner.

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Definitions:

Long-Term Debt

Borrowings by a company not due for payment in the next fiscal year, often used for significant projects or investments.

Accounts Receivable

Funds that customers owe to a business for products delivered or services rendered but have not been paid for yet.

Inventory

The raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Auction Markets

Markets where buyers bid for products or services, with the highest bidder winning the item, such as stock exchanges.