Question 47
Business OrganisationsBusiness organizations in which the owners' personal property may be forfeited in the event of bankruptcy are
- A.partnerships and limited liability companies
- B.partnerships and sole proprietorships
- C.cooperatives and limited liability companies
- D.corporations and sole proprietorships
Show the answer and explanation
Answer: B (partnerships and sole proprietorships)
Explanation
Sole proprietors and (ordinary) partners have unlimited liability, so their personal property can be taken to pay business debts.