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crimeas [40]
4 years ago
15

Determine whether each characteristic describes a general partnership (GP), limited liability company (LLC), both, or neither.

Business
1 answer:
andreev551 [17]4 years ago
6 0

Answer:

Explanation:

A general partnership is formed when two or more individuals come together and agree to share all their profits, assets, and the legal and financial liabilities.

Limited liability Company is a private company whereby the owners will be legally responsible for its debts based on the contribution of the capital thst they invested.

a. Must pay a business (corporate) income tax.

Neither. The above characteristic doesn't describe a general partnership (GP), or a limited liability company. They don't have to pay a corporate tax but will pay personal income tax by the owner.

b. When the business cannot pay its debts, creditors can take the owners' personal assets.

General partnership. When the business cannot pay its debts, creditors can take the owners' personal assets is a characteristics of general partnership.

c. All owners can have management duties.

Limited liability company. The above is a characteristics of limited liability company because all the members have equal status.

d. The owners are often referred to as members.

Limited liability Company. The owners of a limited liability Company are often referred to as members. This is contained in the Article of Organization.

e. Ownership is split among two types of owners: general and limited partners.

Neither. Ownership is split among two types of owners: general and limited partners isn't q characteristics of general partnership or limited liability Company.

f. Owners have limited liability.

Limited liability Company. Here, the owners have limited liability.

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Answer:

The correct option is B. The contract rules of the UCC apply, because the predominant purpose of the contract was sale of goods.

Explanation:

Note: This question is not complete as the options are omitted. The options are therefore provided to complete the question before answering it as follows:

A. The contract rules of the UCC apply, because the contract included the sale of goods.

B. The contract rules of the UCC apply, because the predominant purpose of the contract was sale of goods.

C. The contract rules of the common law apply, because the contract included services, which are governed by the common law.

D. The contract rules of the common law apply, because all contracts are governed by the common law.

The explanation of the answers is now provided as follows:

The contract between Sally and GCC majorly has to do with sales of carpet. Therefore, the contract does not involve service supply, which is installation in this case, as a major component.

Another thing is that the intention of Sally was to sue GCC for the services they provided rather than the product, i.e. carpet, they sell.

Therefore, the correct option is B. The contract rules of the UCC apply, because the predominant purpose of the contract was sale of goods.

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