Which Type of Business Organization Exposes Its Owner(s)to Unlimited Liability

question 84

Multiple Choice

Which type of business organization exposes its owner(s) to unlimited liability?

• A)corporation
• B)partnership
• C)sole proprietorship
• D)Two of these are correct.

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Definitions:

Creditor Beneficiary

A third party that benefits from a contract made between two other parties, especially in terms of having the right to claim performance or compensation.

Donee Beneficiary

An external party that gains advantages from an agreement established between two different parties.

Delegation

The process of assigning authority and responsibilities to others to carry out specific activities or tasks.

Assignment Effective

The point in time when a contractual assignment of rights or interests from one party to another becomes valid and enforceable.