Partnership Formation And Liability
Betty and Bert establish a bicycle repair business. Betty contributes $50,000 in startup capital but will not participate in the daily operations. Bert will manage the business entirely on his own. Which of the following statements is NOT true?
ABoth Betty and Bert have unlimited personal liability for the debts of the business.
BOnly Bert has unlimited personal liability for the debts of the business.
CBetty is considered a limited partner.
DBetty and Bert have formed a partnership.
EThe bicycle business is not subject to separate taxation.
Question Leaderboard
Not enough data yet to show leaderboard.