Madison and Tilson agree to form a limited partnership with Madison as general partner and Tilson as

Question:

Madison and Tilson agree to form a limited with Madison as general partner and Tilson as the limited partner, each to contribute $12,500 as capital. No papers are ever filed, and after ten months the enterprise fails, its liabilities exceeding its assets by $30,000. Creditors of the seek to hold Madison and Tilson personally liable for the $30,000. Explain whether the creditors will prevail.

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...