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Aisha and Chantel form a general partnership. On

March 1st​, Carlo is admitted as a new partner and makes a capital contribution of​ $100,000. As of March 1st the partnership had​ $100,000 in debt. On May 1st​, the partnership takes out a loan for​ $500,000. Which of the following statements is​ true?

A.

Carlo is not liable for neither the​ $100,000 debt nor the​ $500,000 loan.

B.

​Carlo's capital contribution will go to paying the​ $100,000 debt and Carlo will become personally liable for the​ $500,000 loan.

C.

Carlo can get out of paying the​ $500,000 loan by withdrawing from the partnership by June 1st.

D.

Carlo is not liable for the​ $100,000 debt, but would be personally liable for the​ $500,000 loan.

E.

​Carlo's capital contribution will go to paying the​ $100,000 debt, but Carlo is not personally liable for the​ $500,000 loan.


​Teena, Isaiah, and Bart form a general partnership to sell automobiles.​ Teena, who is responsible for ordering​ inventory, orders large​ sport-utility vehicles​ (SUVs) that use great quantities of gasoline. A war breaks out unexpectedly in the Middle East that interrupts the supply of oil to the United States. The demand for large SUVs drops​ substantially, and the partnership cannot sell its inventory. Which of the following statements is​ true?

A.

Teena has violated her duty of care.

B.

Teena has violated her duty to inform.

C.

Teena is not liable because the duty of care was not breached.

D.

Teena must repay the partnership for the lost profits.

E.

Teena is liable under the business judgment rule.



​Maude, Diego,​ Tisa, and Shen form a general partnership. Capital is contributed to the partnership in the following​ amounts: Maude, 30​ percent; Diego, 5​ percent; Tisa, 50​ percent; and​ Shen, 15 percent. The partnership makes​ $100,000 profit for the year. Absent an agreement to the​ contrary, _______.

A.

Maude receives​ $3,000, Diego receives​ $500, Tisa receives​ $5,000, and Shen receives​ $1,500

B.

Maude receives​ $30,000, Diego receives​ $5,000, Tisa receives​ $50,000, and Shen receives​ $15,000

C.

no one can take a profit until the capital contributions have been paid back

D.

each partner receives​ $25,000

E.

Tisa receives the​ $100,000.



​Aisha, Carlo, and Chantel form a general partnership. While on partnership​ business, Carlo causes an automobile accident that injures​ Catherine, a pedestrian. Catherine suffers​ $100,000 in injuries.​ Catherine, at her​ option, can sue​ _______.

A.

​Aisha, Carlo, or Chantel​ separately, or any two of​ them, or all of them.

B.

Carlo and the partnership only.

C.

Carlo only.

D.

Aisha or Carlo only.

E.

the partnership only.


​Heidi, Sergei,​ Shou-Ju, and Jesus form a general partnership to operate a sporting equipment store. After their first store is​ successful, they expand until the partnership owns 100 stores. At that​ time, Heidi dies. Which of the following is​ true?

A.

All of the partnership assets transfer to​ Heidi's heirs.

B.

​Heidi's heirs receive nothing.

C.

​Heidi's heirs now have the right to receive​ Heidi's one-quarter of the​ partnership's profits and other partnership distributions.

D.

​Heidi's share of profits is split among the remaining 3 partners.

E.

One quarter of the partnership assets transfer to​ Heidi's heirs.




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