Multiple-choice

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Liability comparisons Merideth Harper has invested $25,000 in Southwest Development Company. The firm has recently declared bankruptoy and has $60,000 in unpaid debts. Explain the nature of payments, if any, by Merideth 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 Merideth Harper and Christopher Black. c. Southwest Development Company is a corporation. a. If Southwest Development Compan is a sole proprietorship owned by Ms. Harper.: (Select the best answer below.) O A. Ms. Harper has limited liability, which guarantees that she cannot lose more than the $25,000 she invested. B. Ms. Harper has unlimited liability, which means creditors can claim against her personal assets. O c. Ms. Harper has unlimited liability, which means creditors can only claim against the $25,000 she invested. OD. Ms. Harper has limited liability, which is the amount of $60,000 in unpaid debts. y is a 50-50 parinership of Merideth Harper and Christopher Black, (Select the best answer below.) O A. Ms. Harper has limited liability, waich is $30,000, or half of the $60,000 in unpaid debts. has limited liability, which guarantees that she cannot lose more than the $25,000 she invested liability, which means creditors can only claim against the $25,000 she invested. OC. Ms. Harper has unlimited 0 D. Ms. Harper has unilimited liablity, which means creditors can claim against her personal assets. c. If Southwest Development Company is a corporation,: (Select the best answer below.) 0 A, Ms. Harper has limited liability, which guarantees that she cannot lose more than the $25,000 she invested. B. Ms. Harper has unlimited liability, which means creditors can claim against her personal assets. O c. Ms. Harper has unlimited liability, which means creditors can only claim against the S25.000 she invested. O D. Ms. Harper has limited liability, which is the amount of $60,000 in unpaild debts