Which of the following statements is true?a.A partnership has between two to twenty ownersb.A company has unlimited liabilityc.A sole trader has limited liabilityd.A company can have a maximum of 100 owners
Question
Which of the following statements is true?a.A partnership has between two to twenty ownersb.A company has unlimited liabilityc.A sole trader has limited liabilityd.A company can have a maximum of 100 owners
Solution
The correct statement is a. A partnership has between two to twenty owners.
Here's why:
a. A partnership is a type of business entity where two or more individuals share ownership. The number of partners can vary from two to twenty in most jurisdictions.
b. This statement is false. A company has limited liability, not unlimited. This means that the owners of the company are not personally responsible for the company's debts and obligations.
c. This statement is also false. A sole trader has unlimited liability, not limited. This means that the owner is personally responsible for all the business's debts and obligations.
d. This statement is false as
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