Dr. Sweet purchased 1,000 shares of Acme Dental Associates in 2008 for $10,000. This represented a 20% equity interest in Acme, which is an S corporation. This year, Acme defaulted on a $90,000 bank loan.

1.) To what extent can the bank demand that Dr. Sweet repay the loan?

2.) What if Acme were a partnership in which Dr. Sweet was a 20% partner?

3.) Would your answer change if Dr. Sweet were a 20% limited partner in Acme?

4.) What if Acme were a LLC?