Liability comparisons

NerissaSmith has invested $47,000 in Northeast Productions Company. The firm has recently declared bankruptcy and has $108,000 in unpaid debts. Explain the nature of Nerissa's personal liability , if any, in each of the following situations. a. NortheastProductions Company is a sole proprietorship owned by Ms.Smith. b. NortheastProductions Company is a 50-50 general partnership of NerissaSmith and RogerBrown. c. NortheastProductions Company is a limited partnership where NerissaSmith is a limited partner. d. NortheastProductions Company is a corporation.

If NortheastProductions Company is a limited partnership where NerissaSmith is a limited partner,:

(Select the best answer below.)

A. Ms. Smith has unlimited liability which means creditors can claim against the $47,000she invested as well as her other personal assets.

B. Ms. Smith has unlimited liability which means that creditors can only claim against her personal assets.

C. Ms. Smith has unlimited liability, which means creditors can claim against her personal assets.

D. Ms. Smith has lost her $47,000 investment, but she has limited liability, so she is not personally liable for the firm's

$108,000 in unpaid debts.