Jack Thomson is a partner in East Hills Development Company , a residential real estate venture that specializes in building upscale neighborhoods . As a founding limited partner , Jack contributed $2 million of his own funds . Last year , East Hills raised $ 10 million in debt to finance the beginnings of a new 100 -home development . Since then , the economy has entered into a recession and East Hills cash flow has plummeted , putting East Hills at serious risk of bankruptcy . Select all that accurately describe the situation .

Even East Hills does not survive the recession, Jack will never be liable for more than his original investment of $2 million

Jack is subject to double taxation both at the company-level and the personal-level

Jack is not highly involved in the day today operations of the company.

Hills is unable to make its debt paymentscreditors way seize Jack's personal assets.