Vernon organized a limited partnership and is the only general partner. Xavier invested $40,000 in the partnership

Question:

Vernon organized a limited and is the only general partner. Xavier invested $40,000 in the and was admitted as a limited partner with the understanding that he would receive 10% of the profits. After two unprofitable years, the ceased doing business. At that point, liabilities were $170,000 larger than assets. How much money can the partnership’s creditors obtain from Xavier’s personal assets to satisfy the unpaid debts?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...