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

Question

2 years ago

6

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

Business

2 answers:

pshichka [43] · Answer 1 · 2022-05-29T12:05:00+03:00

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.

JulsSmile [24] · Answer 2 · 2022-05-29T14:21:11+03:00

JulsSmile [24]2 years ago

4 0

Answer: General partnership

Explanation: