In which type of business, all owners share in gains and losses and all have unlimited liability for all business debts?
Correct answer: B. General Partnership
- A. Sole-proprietorship
- B. General Partnership
- C. Limited Partnerhsip
- D. Corporation
Explanation
In a general partnership, every general partner shares profits and losses and has unlimited personal liability for the firm’s debts. Limited partners have restricted liability, while a corporation is legally separate from its owners.
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About Principles of Management
Management principles explain how organisations set objectives and coordinate people and resources to achieve them. Coverage includes planning, organising, staffing, directing, coordinating and controlling, along with authority, responsibility, delegation, span of control and the levels of management. These functions are related but not interchangeable, especially planning and controlling.
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