Question

Todd and Cathy created a firm that is a separate legal entity and will share ownership of that firm on a 50-50 basis. Which type of entity did they create if they have no personal liability for the firm's debts?A. limited partnershipB. corporationC. sole proprietorshipD. general partnershipE. public company

Answer 1

Answer:

The correct answer is B

Explanation:

A corporation is the kind of entity, in which the operations of the business will be treated as a separate entity, legal entity which is guided by the group of officers as BOD (Board of Directors). And the partners of this type of entity, bears no personal liability.

So, Cathy and Todd, who established or created a business and that is a separate legal entity and share the ownership of 50-50. It will be a Corporation.