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Market Structures and Competition

Question 2 • * HSA 26-27 Economics

Now that their business has become a separate legal entity, Janet and Jose are for the company's debts.

Answer
A
no longer responsible
B
now responsible
C
able to eliminate

Explanation

When a business becomes a separate legal entity, it is legally distinct from its owners. The company—not Janet and Jose personally—is generally responsible for the company’s debts, so they are no longer responsible for them personally. This describes choice A, “no longer responsible.”

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