General Partnership Wild Bill, Calamity Jane, and Poker Alice formed a general partnership in Deadwood, South Dakota, to operate an Old West reenactment company. They filed a fictitious name statement with the South Dakota Secretary of State, authorizing the partnership to conduct the business under the name of "The Guns of Deadwood." The business was so successful that the partnership borrowed funds from Last Chance National Bank to purchase a building with a large outdoor stage and additional parking. Potato Creek Johnny later joined the partnership as a general partner, with the unanimous consent of the other partners. A few months later, their gamble failed. Business dropped off significantly and revenues declined. When loan payments were not made on time, the bank sued the partners, including Potato Creek Johnny, to recover the amount due the bank. Are the individual partners personally liable for the bank loan? A. Are the individual partners personally liable for the bank loan?
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This note was uploaded on 12/15/2011 for the course BUSINESS L 101 taught by Professor Smith during the Spring '11 term at American.