Mount Pleasant Tires Does Not Have Sufficient Funds to Pay

question 27

Multiple Choice

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business. Jess, a business owner, is not personally liable if:

• A) he is a sole proprietor of the business.
• B) the business is a corporation and he is a shareholder.
• C) he committed the tort.
• D) he is a general partner of the business.

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Definitions:

Corporate Sustainability

Corporate sustainability involves practices and strategies businesses embrace to operate responsibly, minimizing their environmental footprint while ensuring economic and social sustainability.

Limited Partnership

A partnership comprised of one or more general partners who manage the business and are personally liable, and one or more limited partners who are liable only to the extent of their investments.

Limited Partners

Investors in a partnership who are not involved in daily business operations and whose liability is limited to the amount of their investment.

General Partners

Individuals or entities that participate in the management of a partnership and have unlimited liability for its debts.