Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Choose the correct option. A partnership is established with two General partners each contributing $500,000 to the Partnership, and third Limited Liability Partner who contributed

Choose the correct option. A partnership is established with two General partners each contributing $500,000 to the Partnership, and third Limited Liability Partner who contributed $200,000 and wasn't involved in the daily operations of the partnership. Two years later the partnership is in trouble, and has significant debts to many creditors exceeding 1.2 Million dollars. Contributing to the creditor issues of the partnership was the fact that one of the general partners has left the country and taken up residence on an Caribbean Island that has no economic ties with Canada, and has no intention of returning. Which one of the following statement(s) is / are correct ? i) The general partner left in Canada is only responsible for up to half of any creditor claims ii) The limited partner is responsible for 16.67 % of any creditor claim because that is his percentage ownership of the partnership. iii) The general partner left in Canada has unlimited liability when it comes to creditor claims. iv) The partner that has left the country must pay his percentage of the creditor claims, and the creditors have no choice but to try and recover some of the amounts owing from him v) The

Step by Step Solution

3.44 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below The correct statement is iii The genera... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

More Books

Students also viewed these Accounting questions

Question

How and when may a minor ratify a contract?

Answered: 1 week ago