quiz 19.docx - LES 305 Quiz#19 Tom and Ralph drafted a partnership agreement but did not sign it In their day-to-day business dealings they demonstrate

quiz 19.docx - LES 305 Quiz#19 Tom and Ralph drafted a...

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LES 305 Quiz #19 Tom and Ralph drafted a partnership agreement, but did not sign it. In their day-to-day business dealings they demonstrate a clear intent to carry on as co-owners of a business for profit. Because they have not yet signed the partnership agreement, they cannot be considered general partners. In choosing a business entity, principals of the business should consider the extent to which they are personally liable for debt and other contract or tort liabilities of the business entity itself. In a limited partnership, a limited partner's personal liability, like a general partner's personal liability, extends to all the partnerships' debts and liabilities. General partnerships are created by filing a form with a government agency.
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