Question

Alan and Ivan opened a kosher delicatessen, Main Court, which failed after barely a year in business. One supplier sued for overdue bills. Alan and Ivan will be liable to the supplier if the Main Court was which of the following types of organizations?

a. S Corporation
b. Limited Liability Partnership (LLP)
c. General Partnership
d. Close Corporation

Answer 1

Answer: (C) General partnership

Step-by-step explanation:

The general partnership is one of the type of business organization that is established by the two and more than two owner. The general partnership is the arrangement of the assets, financial and the profit to the in the structure of the business.

In the business, choosing the partner is one of the important task as it is importance for the organization goals and the values.

The main advantage of the general partnership is that the business partners are not needed to pay the income tax.

Therefore, Option (C) is correct.