A Business Entity Formed by Two or More Individuals Who

question 7

Multiple Choice

A business entity formed by two or more individuals who each have unlimited liability for business debts is called a

• A)corporation.
• B)sole proprietorship.
• C)general partnership.
• D)limited partnership.
• E)limited liability company.

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Definitions:

Average Strength

Typically refers to the median level of force or power of an entity or substance, measured against a standard or amongst a range.

Fraud

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Undue Influence

A form of manipulation that is used to persuade someone to act in a way that is not in their best interest, invalidating consent in contracts.

Principal

In financial terms, it refers to the original sum of money borrowed in a loan, or the initial amount of money invested, excluding any interest or profits. In legal terms, it can also refer to a person who grants authority to an agent to act on their behalf.