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27 August, 04:08

The ABC Law Firm has a few senior individuals who share the firm's debts, work, and profits. If the firm were to fail, those individuals could be forced to use personal assets to cover the firm's debts. Which type of business organization does this law firm most likely have?

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  1. 27 August, 04:52
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    The law firm is likely to be a sole proprietorship.

    Explanation:

    The ABC Law Firm has a few senior individuals who share the firm's debts, work, and profits. If the firm were to fail, those individuals could be forced to use personal assets to cover the firm's debts.

    These characteristics indicate that ABC is a partnership business.

    A partnership is a formal agreement between two or more people to own and operate a business. In a partnership, there are unlimited liabilities. The business is not a separate entity from the owners. The partners share the liability and profits equally.
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