Chapter 12, Problem 1E

Determine whether each characteristic describes a general partnership (GP), limited liability company (LLC), both, or neither.

  _______ a.    Must pay a business (corporate) income tax.

     _______ b.    When the business cannot pay its debts, creditors can take the owners’ personal assets.

  _______ c.    All owners can have management duties.

  _______ d.    The owners are often referred to as members.

     _______ e.    Ownership is split among two types of owners: general and limited partners.

  _______ f.    Owners have limited liability.