Which of the Following Is a Consequence of Defective Formation

question 92

Multiple Choice

Which of the following is a consequence of defective formation of a limited partnership?

• A) Contracts entered into by the partnership will be void.
• B) Contracts entered into by the partnership will be voidable by the other party.
• C) The rights between the partners will be different as a result of the defective formation.
• D) A partner who would have otherwise enjoyed limited partner status might have unlimited liability to a third party who conducted business with the partner, while holding a "good faith" belief that the partner was a general partner.
• E) A partner who would have otherwise enjoyed limited partner status will have unlimited liability to all third parties who conduct business with the partnership during the time period affected by the defective formation.

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Definitions:

Mixed Strategy

A strategic choice in game theory where a player chooses between different strategies in a probabilistic manner rather than sticking to a single strategy.

Payoff

The return or reward received from an investment or action, often used in the context of games, strategies, and economic decisions.

Swerve

A sudden change in direction, often used metaphorically to discuss changes in plans, decisions, or behaviors.

Dominant Strategy Equilibrium

Dominant strategy equilibrium exists in a strategic game when each player has a strategy that yields the highest payoff regardless of the strategies chosen by other players.