Sea Green Enterprises reports the following assets and liabilities on its balance sheet.
Sea Green has just lost a product liability suit with damages of $10 million being awarded to the plaintiff. Although Sea Green will appeal the judgment, legal counsel indicates that the judgment is highly unlikely to be overturned by the appellate court. The product liability insurance carried by Sea Green includes a payout ceiling of $6 million. What is the amount of liability of the entity and its owners if Sea Green is?
a. A sole proprietorship?
b. A partnership or an LLC?
c. A C corporation?
d. An S corporation?

  • CreatedMay 25, 2015
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