Please answer, the 3 questions below. thank you very much Liability comparisons

Question

Please answer, the 3 questions below.

thank you very much

Liability comparisons 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 Merideth in each of the following situations. Southwest Development Company is a sole proprietorship owned by Ms. Harper. Southwest Development Company is a 50-50 partnership of Merideth Harper and Christopher Black. Southwest Development Company is a corporation.

Explanation / Answer

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

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

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