Should partners of a business be held personally liable for the debts of the business, or should
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John and Jeff formed a partnership and started selling cookies based on a secret recipe they created. After one year of strong sales, Jeff left the company with $30,000 cash and was never heard of again. Now, the creditors are requesting payment from John to satisfy a loan Jeff signed. If John can’t make the payments from what is left in the business, who will the bank look to for payment?
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...
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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