Peter, Paul and Mary each own a 1/3 ownership interest in Magic Dragon Investments, which is an investment management business organized as a partnership. One of Marys clients sues the partnership for investment losses, citing that Mary improperly invested the clients assets in unsuitable investments. A judge rules in favor of the client.

A. Mary is solely responsible for bearing the loss related to the lawsuit since it was her client.

B. Peter, Paul and Mary are responsible for the loss related to the lawsuit, regardless of how the three ultimately allocate the loss amongst themselves.

C. The loss related to the lawsuit is equally shared among Peter, Paul, and Mary given their equal ownership percentages.

D. Peter and Paul could end up bearing a greater proportion of the loss than Mary, but their losses would be limited to the amount they have invested in Magic Dragon Investments.