Liability comparisons. Nerissa Smith has invested $47,000 in Northeast Productions Company. The firm has recently declared bankruptcy and has $108,000 in unpaid debts.

a) Explain the nature of Nerissas personal liability, if any, in each of the following situations.

I. Northeast Productions Company is a 50-50 general partnership of Nerissa Smith and Roger Brown.

II. Northeast Productions Company is a limited partnership where Nerissa Smith is a limited partner.

b) Provide advantages and disadvantages for each form of organization.