Principals Generally Have No Personal Liability for the Business Entity's

question 16

Multiple Choice

Principals generally have no personal liability for the business entity's debts regarding:

• A) limited partnerships.
• B) limited liability partnerships.
• C) corporations.
• D) limited liability companies.

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Definitions:

Principal Amount

The initial size of a loan or bond or the amount of money invested, excluding any interest or profits.

Extended Period

A term used to denote a longer than usual time frame in various contexts, such as payment terms, investment durations, or accounting cycles.

Long-term Note

A debt security that requires repayment of the principal, along with interest, over a period longer than one year, typically used for significant capital expenditures or investments.

Discount On Notes Payable

The difference between the face value of a note and what is actually paid, which occurs when the note is issued for less than its nominal value.