Choose the correct option. A partnership is established with two General partners each contributing $500,000 to the
Question:
Choose the correct option. A partnership is established with two General partners each contributing $500,000 to the Partnership, and third Limited Liability Partner who contributed $200,000 and wasn't involved in the daily operations of the partnership. Two years later the partnership is in trouble, and has significant debts to many creditors exceeding 1.2 Million dollars. Contributing to the creditor issues of the partnership was the fact that one of the general partners has left the country and taken up residence on an Caribbean Island that has no economic ties with Canada, and has no intention of returning. Which one of the following statement(s) is / are correct ? i) The general partner left in Canada is only responsible for up to half of any creditor claims ii) The limited partner is responsible for 16.67 % of any creditor claim because that is his percentage ownership of the partnership. iii) The general partner left in Canada has unlimited liability when it comes to creditor claims. iv) The partner that has left the country must pay his percentage of the creditor claims, and the creditors have no choice but to try and recover some of the amounts owing from him v) The
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts