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Suppose you form a general partnership with your best friend and, after a particularly successful year, she withdraws $1.5 million from various accounts held by

  1. Suppose you form a general partnership with your best friend and, after a particularly successful year, she withdraws $1.5 million from various accounts held by your firm and leaves the country to an undisclosed location. The $1.5 million was just enough to cover debts that accumulated over the year. You are liable for:

  1. None of the debts since your partner stole the cash reserves
  2. 750,000, since you were a partner
  3. Only your investment in the partnership if that sum is less than $100,000
  4. $1.5 million
  5. Nothing because the banks holding these accounts should have required you to sign the withdrawal requests

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