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Fitzgerald and Kennedy were roommates in college and began to sell custom-designed T-shirts with dormitory logos. On each shirtthey put a small logo oftheir own,
Fitzgerald and Kennedy were roommates in college and began to sell custom-designed T-shirts with dormitory logos. On each shirtthey put a small logo oftheir own, which read "Dorm Shirts.'I They both contributed to the design, production, and marketing of the T-shirts and split any prots. Eventually, the shirts became so popular that the roommates began plans to expand their operations and offer other apparel (such as sweatshirts} with dormitory logos. They ultimately locate Johnson, who agrees to finance the expansion with a $50,000 contribution. Johnson forms Dorm Apparel LP. and has his counsel draft a limited partnership agreement that names Fitzgerald and Kennedy as general partners and Johnson as a limited partner. The business expands rapidly and initially sales are so good that Johnson often pitches in by helping with design, production, and marketing. Eventually, a few years later, the partnership's expenses and debt outpace its revenue, and Dorm Apparel defaults on the loan to Big Bank. If Big Bank were to file a lawsuit because of the default on the loan, which of the following assets are at risk? I. Assets held by Dorm Apparel, L.P. ll. Johnson's personal assets. |ll. Fitzgerald and Kennedy's personal assets
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