Question

part 1: main idea
what is the term for a business that is co - owned by two or more people who agree on how responsibilities, profits, and losses will be divided?
partnership
general partnership
limited partnership
limited liability partnership
6
multiple choice 4 points
part 1: main idea
what is the term for a business in which none of the co - owners is responsible for the debts or mistakes of the others?
partnership
general partnership
limited partnership
limited liability partnership

Explanation:

• Partnership: A general term for a business co - owned by two or more people. But it doesn't specify the liability details.
• General partnership: Partners are jointly and severally liable for the debts and mistakes of the business. So, this is not the answer for the second question.
• Limited partnership: Has at least one general partner (who has unlimited liability) and limited partners (with limited liability). But it doesn't fully meet the “none of the co - owners is responsible for the debts or mistakes of the others” condition for the second question.
• Limited liability partnership (LLP): In an LLP, none of the co - owners is responsible for the debts or mistakes of the others.

Answer:

• For the first question: partnership (as it is the broadest term that fits the description of a business co - owned by two or more people who agree on division of responsibilities, profits, and losses).
• For the second question: limited liability partnership.