Question
Mike and Jackson are equal general partners in The Corner Store. Mike contributed 80% ($80,000) of the required funds to start the partnership and Jackson
Mike and Jackson are equal general partners in The Corner Store. Mike contributed 80% ($80,000) of the required funds to start the partnership and Jackson contributed 20% ($20,000). Jackson carries out 75% of the day to day operations of the business. Which of the following is accurate with respect to the partners' liability exposure?
A. The partners have equal and unlimited liability in the business.
B. Jackson is liable for 75% of any claims made.
C. Mike is liable for 80% of any claims made.
D. Any claims against the business will be limited to $100,000.
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