Question

Determine whether each characteristic describes a general partnership (GP), limited liability company (LLC), both, or neither.A. Must pay a business (corporate) income tax.B. When the business cannot pay its debts, creditors can take the owners' personal assets. C. All owners can have management duties. D. The owners are often referred to as members. E. Ownership is split among two types of owners: general and limited partners. F. Owners have limited liability.

Answer 1

Answer and Explanation:

The categorization is shown below:

a. Neither should be selected as partnership and LLC are through entities and for the income tax is calculated on personal income tax

b. General partnership as it contains the unlimited liabilities

c. LLC as it contains the equal status in this type of business organization.

d,. LLC as it is standardized according to the organization articles

e. Neither should be selected as general and limited should be come under the limited partnership

f. LLC should be selected as in this, owners have the limited liability