WileyPLUS Financial Accounting, 8e ORION Practice - 1.1: Identify the forms of b

Question

WileyPLUS Financial Accounting, 8e ORION Practice - 1.1: Identify the forms of business organization an... Q1.163: Joe Keller and Ed Keller are brothers and both are lawyers. They start a personal injury law firm Over the course of six months, they lose financially, as the settlements reached were not large enough to cover their expenses. The business is in debt. Which is the most likely scenario regarding their debt? A The Keller brothers probably formed a partnership. which means they have limited personal liability. B The Keller brothers probably formed a corporation, which means they have unlimited The Keller brothers probably formed a partnership, which means they have unlimited D The Keller brothers probably formed a proprietorship. which means they have limited personal liability personal liability. personal liability

Explanation / Answer

Answer is option "C" the keller brothers probably formed a partnership, which means they have unlimited personal liability.

Joe keller and Ed keller are lawyers , formed a law firm. Generally this is partnership firm in which partners may have jointly or jointly and severally liable for the debts of the partnership firm.

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