Laura is an investor and a limited partner in a limited partnership
Two years after she becomes a limited partner, Laura thinks that the general partners are not doing a very good job managing the affairs of the limited partnership and participates in the management of the limited partnership. While she is participating in management, a bank loans $1 million to the limited partnership, believing that Laura is a general partner. If the limited partnership defaults on the $1 million loan, which of the following holds well?
A) Laura is not personally liable as she is a limited partner on paper.
B) Laura is personally liable if the bank, in good faith, thought she was a general partner.
C) Laura has unlimited personal liability as a limited partner.
D) Laura's liability is restricted to the value of her capital investment in the partnership.
B
You might also like to view...
A racetrack layout is also called a
A. gondola layout. B. free-form layout. C. boutique layout. D. fixture layout. E. loop layout.
Stores offering low-quality alternatives to luxury products at low prices most likely follow a ________ positioning strategy
A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) more-for-more
Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NACole Company uses the direct write-off method. The company wrote off an uncollectible account in the amount of $4,000. The write-off is immaterial in amount.AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
What are the risks associated with the projectedliabilities of a defined benefit pension plan?
What will be an ideal response?