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Question: One year ago, Rosie Pekin inherited $50,000 from her aunt. She decided to invest it in Rock-n-away Cradle Company. The Company declared bankruptcy last week and is in debt for about $100,000. Answer each situation below independently.
1) If Rock-n-away Cradle Company is a corporation, how would that debt affect Rosie?
2) If Rock-n-away Cradle Company is a sole proprietorship, how would that debt affect Rosie?
3) If Rock-n-away Cradle Company is a partnership with Rosie and Deb Johnson that is split equally, how would that debt affect Rosie?
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