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Xavier and Shawn are co-owners of a party-planning business. They split all of the profits 50-50 and are able to make decisions that are binding on both parties. At one of their parties a guest is injured on a piece of equipment. The guest sues Xavier and Shawn, and they find they're personally liable for any damages. What kind of business structure do they have?


Question 8 options:



Sole proprietorship



General partnership



Limited liability company



Corporation

Respuesta :

MrCreighton

In this instance, Xavier and Shawn are general partners. In this arrangement, all partners are equally responsible for the business, meaning they are both liable for any financial loss. LLC would protect their personal assets from this type of claim. Obviously, this isn't a sole proprietorship because there is more than one owner.

Answer: General partnership

Explanation:

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