Question

question 12
three sisters specialty foods, owned by judith coker, mixie humphreys, and jade watson, sells eggless cake mixes for people on a restricted diet. coker recently purchased an industrial - grade mixer without conferring with her sisters who were upset when they learned that they were all three liable for the payments on the mixer. three sisters is an example of a:
private corporation
joint partnership
limited partnership
closely held corporation
general partnership

Explanation:

In a general partnership, all partners are jointly and severally liable for the debts and obligations of the partnership. Since all three sisters are liable for the payments on the mixer, Three Sisters Specialty Foods is a general partnership. In a private corporation, liability is generally limited to the shareholders' investment. In a joint - partnership, the term is not a standard business form in the same sense as others here. In a limited partnership, there are general partners with unlimited liability and limited partners with limited liability. In a closely held corporation, the number of shareholders is limited, and liability is also limited to investment.

Answer:

general partnership