Todd and Cathy created a firm that is a separate legal entity and will share ownership of that firm on a 50-50 basis. Which type of entity did they create if they have no personal liability for the firm's debts?

A. Limited partnership

B. Corporation

C. Sole proprietorship

D. General partnership

E. Public company

B. Corporation

Explanation:

A Corporation is formed about by at least one person.

A coparation is a separate legal entity.

Owners of a corporation usually have limited liability; they have no personal liability for the firm's debts.

In a limited partnership, some partners have unlimited liability.

A sole proprietorship is owned by a single person, the business isn't a separate legal entity and the owner has unlimited liabilities.

In a general partnership, partners have unlimited liabilities.