Unlimited Liability for Business Debts Is Imposed on

question 57

Multiple Choice

Unlimited liability for business debts is imposed on

• A) shareholders in a C corporation.
• B) shareholders in an S corporation.
• C) sole proprietors.
• D) limited partners.

---

Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

Depreciate Equipment

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in the asset's value over time.

NOPAT

Net Operating Profit After Tax; a measure of company profitability that excludes the cost and benefits of financing and investments.

Net Cash Flows

The difference between a company's cash inflows and outflows over a specific period, showing the company's financial health and liquidity.