Question

4 multiple answer 6.25 points select all of the following businesses that can have unlimited liability. partnership non - profit corporation multi - level marketing business sole proprietorship private (close) corporation licensing business - format franchise \s\ corporation

Explanation:

• Partnership: In a general partnership, partners have unlimited liability as they are personally responsible for the business's debts and obligations.
• Sole proprietorship: A sole proprietor has unlimited liability since the business and the owner are not legally separate, so the owner is personally liable for all business debts.
• Non - profit corporation: These typically have limited liability as they are legal entities separate from their members/directors.
• Multi - level marketing business: The liability here depends on the business structure, but it's not inherently an unlimited liability structure (e.g., if structured as a corporation or LLC, it has limited liability).
• Private (close) corporation: Corporations (including private ones) have limited liability, meaning shareholders' liability is limited to their investment.
• Licensing: Licensing is a business arrangement, not a business structure with liability in the same sense; the liability depends on the underlying business structure of the licensor/licensee, and it's not an unlimited liability structure by itself.
• Business - format franchise: Franchises can be structured in ways (like corporations or LLCs) that have limited liability; the franchisee's liability is often limited depending on the structure.
• "S" corporation: S - corporations are a type of corporation, and shareholders have limited liability, limited to their investment in the corporation.

Answer:

A. Partnership, D. Sole proprietorship