Llabillty comparlsons Merideth Harper has invested $25,000 in Southwest Development Company. The firm has recently declared bankruptcy and has $60,000 in unpaid debts. Explain the nature of payments, if any, by Merideth in each of the follawing situations. a. Sauthwest Develapment Company is a sole proprietorship owned by Ms. Harper. b. Southwest Development Campany is a 50-50 partnership of Merideth Harper and Christapher Black a. If Southwest Develapment Company is a sole praprietarship owned by Ms. Harper: (Select the best answer below.) O A. Ms. Harper has limited iability, which is the amount of $80,000 in unpaid debts. O B. Ms. Harper has unlimited liability, which means creditors can claim against her personal assets. C. O D. Ms. Harper has limited liability, which guarantees that she cannot lose more than the $25,000 she invested. Ms. Harper has unlimited liability, which means creditors can only claim against the S25 000 she invested
Llabillty comparlsons Merideth Harper has invested $25,000 in Southwest Development Company. The firm has recently declared bankruptcy and has $60,000 in unpaid debts. Explain the nature of payments, if any, by Merideth in each of the follawing situations. a. Sauthwest Develapment Company is a sole proprietorship owned by Ms. Harper. b. Southwest Development Campany is a 50-50 partnership of Merideth Harper and Christapher Black a. If Southwest Develapment Company is a sole praprietarship owned by Ms. Harper: (Select the best answer below.) O A. Ms. Harper has limited iability, which is the amount of $80,000 in unpaid debts. O B. Ms. Harper has unlimited liability, which means creditors can claim against her personal assets. C. O D. Ms. Harper has limited liability, which guarantees that she cannot lose more than the $25,000 she invested. Ms. Harper has unlimited liability, which means creditors can only claim against the S25 000 she invested
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 72TA
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Transcribed Image Text:Llabillty comparlsons Merideth Harper has invested $25,000 in Southwest Development Company. The firm has recently declared bankruptcy and has $60,000 in unpaid debts. Explain the nature of payments, if any, by Merideth in each of the follawing
situations.
a. Sauthwest Develapment Company is a sole proprietorship owned by Ms. Harper.
b. Southwest Development Campany is a 50-50 partnership of Merideth Harper and Christapher Black
a. If Southwest Develapment Company is a sole praprietarship owned by Ms. Harper: (Select the best answer below.)
O A. Ms. Harper has limited iability, which is the amount of $80,000 in unpaid debts.
O B. Ms. Harper has unlimited liability, which means creditors can claim against her personal assets.
C.
O D.
Ms. Harper has limited liability, which guarantees that she cannot lose more than the $25,000 she invested.
Ms. Harper has unlimited liability, which means creditors can only claim against the S25 000 she invested
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