Amelia opens a tea shop and reading room. Customers find a broad selection of teas and other beverages, and often gather in the comfortable sitting groups to chat, surf the web, and relax. One day, John, an employee at Amelias Tea Shoppe, notices a puddle near one of the settees, but becomes distracted before he can clean it up. Customer Suzy slips in the puddle and falls, striking her head on the arm of a chair. If Suzy sues the Tea Shoppe for negligence, the result would be:

a. Since Amelia organized the business as a sole proprietorship, she is personally legally responsible for the for negligence and Suzy can seek to collect her judgment from Amelias personal assets.

b. Even though Amelia organized the business as a sole proprietorship, she is not personally legally responsible for the negligence and Suzy cannot seek to collect her judgment from Amelias personal assets. Only the business is legally responsible to Suzy.

c. In actuality, given the nature of the business, Amelia created a limited liability company (LLC) and this provides legal personal liability protection as a corporation would.

d. Amelia organized the business as a general partnership between herself and the business, The Tea Shoppe, and as general partners both are personally legally responsible to Suzy.

2. The similarities between LLCs and LPs are:

a. ONLY THAT both entities have a certain degree of freedom in how they define the role of the entity's members and the entity's structure. This includes having control over voting, financial terms, or fiduciary responsibilities of each member.

b. ONLY THAT both types of entities also incur pass-through tax treatment. This means each investor is subject to reporting their share of the entity's profit on their personal tax return.

c. ONLY THAT both LPs and LLCs are not subject to federal income tax.

d. ONLY THAT in both LLCs and LPs all members of an LLC and the limited partners in an LP have the right to manage the business.

e. All of the above.

f. Only a, b, c above.