Merideth Harper has invested$$ $$25,000$ in Southwest Development Company. The firm has recently declared bankruptcy and has$$ $$60,000$ in unpaid debts. Explain the nature of$$ payments, if$$ any, by Ms$.$ Harper in each of the following situations.

a$.$Southwest Development Company is a sole proprietorship owned by Ms$.$ Harper.

b$.$Southwest Development Company is a$50-50$ partnership of Ms$.$ Harper and Christopher Black.

c$.$Southwest Development Company is a corporation.

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Part $1$

a$.$If Southwest Development Company is a sole proprietorship owned by Ms$.$ Harper,:$($Select the best answer$$ below.$)$

A$.$

Ms$.$ Harper has unlimited$$ liability, which means creditors can claim against her personal assets.

B$.$

Ms$.$ Harper has limited$$ liability, which guarantees that she cannot lose more than the$$ $$25,000$ she invested.

C$.$

Ms$.$ Harper has limited$$ liability, which is the amount of$$ $$60,000$ in unpaid debts.

D$.$

Ms$.$ Harper has unlimited$$ liability, which means creditors can only claim against the$$ $$25,000$ she invested.

Part $2$

b$.$If Southwest Development Company is a$50-50$ partnership of Ms$.$ Harper and Christopher$$ Black,:$($Select the best answer$$ below.$)$

A$.$

Ms$.$ Harper has unlimited$$ liability, which means creditors can only claim against the$$ $$25,000$ she invested.

B$.$

Ms$.$ Harper has unlimited$$ liability, which means creditors can claim against her personal assets.

C$.$

Ms$.$ Harper has limited$$ liability, which guarantees that she cannot lose more than the$$ $$25,000$ she invested.

D$.$

Ms$.$ Harper has limited$$ liability, which is$$ $$30,000,$ or half of the$$ $$60,000$ in unpaid debts.

Part $3$

c$.$ If Southwest Development Company is a$$ corporation,:$($Select the best answer$$ below.$)$

A$.$

Ms$.$ Harper has limited$$ liability, which is the amount of$$ $$60,000$ in unpaid debts.

B$.$

Ms$.$ Harper has unlimited$$ liability, which means creditors can claim against her personal assets.

C$.$

Ms$.$ Harper has limited$$ liability, which guarantees that she cannot lose more than the$$ $$25,000$ she invested.

D$.$

Ms$.$ Harper has unlimited$$ liability, which means creditors can only claim against the$$ $$25,000$ she invested.