Shannon Has Just Become a Partner in a & R

question 36

Multiple Choice

Shannon has just become a partner in A & R Accounting Partnership.Her capital contribution is $10,000,which she paid from her savings.Which of the following is correct with respect to Shannon's liability for partnership obligations?

• A) Shannon has no liability for partnership debts that existed at the time of her admission as a partner.
• B) Shannon is liable only to the extent of her capital contribution for partnership debts that occur after her admission as a partner.
• C) Shannon has unlimited personal liability for all partnership debts regardless of whether they were incurred before or after she became a partner.
• D) Shannon has unlimited personal liability for all partnership obligations that occur after she became a partner;she has liability to the extent of her capital contribution for obligations that existed at the time she became a partner.

---

Definitions:

Surface Structure

In linguistics, the superficial appearance or syntax of a sentence, as opposed to the deeper, underlying meaning.

Flexibility

The quality of being adaptable or variable, referring to the ability to adjust to new conditions or the capacity of being bent or stretched.

Human Language

A complex system of communication unique to humans, allowing for the expression and understanding of thoughts, feelings, and concepts through spoken, written, or signed forms.

Common Chimpanzees

A species of great ape known for its intelligence and social behaviors, native to the forests and savannahs of Africa.