a. If Northeast Productions Company is a sole proprietorship owned by Ms. Smith,: (Select the best answer below.) A. Ms. Smith has unlimited liability, which means creditors can only claim against the $25,000 she invested. B. Ms. Smith has unlimited liability, which means creditors can claim against her personal assets. C. Ms. Smith has limited liability, which is the amount of $60,000 in unpaid debts. OD. Ms. Smith has limited liability, which guarantees that she cannot lose more than the $25,000 she invested.
a. If Northeast Productions Company is a sole proprietorship owned by Ms. Smith,: (Select the best answer below.) A. Ms. Smith has unlimited liability, which means creditors can only claim against the $25,000 she invested. B. Ms. Smith has unlimited liability, which means creditors can claim against her personal assets. C. Ms. Smith has limited liability, which is the amount of $60,000 in unpaid debts. OD. Ms. Smith has limited liability, which guarantees that she cannot lose more than the $25,000 she invested.
Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation
Section: Chapter Questions
Problem 55P
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