Fran’s interior decorating business has grown since she opened it by h

QUESTION

Fran’s interior decorating business has grown since she opened it by herself three years ago. Now she has another decorator who shares in the managerial decision making and profits, as well as six decorators who share in the basic workload.

Fran has restructured her company to reflect these changes and only these changes. What kind of company does Fran have now?
A) a sole proprietorship
B) a limited partnership
C) a general partnership
D) a limited liability partnership
E) a limited liability company

ANSWER

Answer: C
Explanation: C) In a general partnership, two or more partners are responsible for the business and share profits, liabilities, and management responsibilities.