Which scenario most accurately illustrates the concept of "unlimited liability"?
a) larry and bill started a new carpet cleaning business back in 2010. the business started turning a profit in 2015, and has been doing well, but bill has decided that he wants out of the business, so he decided to sell his portion of the business to larry and another man named frank.
b) willie has independently owned and operated willie's car wash since 1999, but the business has been struggling for the past 5 years. willie has been borrowing money to keep the business afloat, but his business revenue continues to shrink while his debts are growing too large to manage. next week, willie is going to have to shut down the car wash for good.
c) a new video streaming tech company, called movie viewing streamer corp, promised to become the next netflix when it went public in 2016 with a price of $40 per share. jim decided put his entire life savings into the stock, nearly $40,000. in fall of 2018, movie viewing streamer corp announced it was declaring bankruptcy and its stock fell to less than $1 per share.
d) steven is the sole proprietor of his kid's play business, super fun kids, a large indoor play space. because of the nature of the business, steven pays very high insurance premiums to cover any accidents that take place in the play area. in august, a 7 year old girl was playing on the slide and sprained her ankle. her parents' attorney has written steven and super fun kids asking to pay for her medical bills.