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:

Consumer's Income

The total amount of income earned by an individual or household from various sources, influencing their purchasing power and demand for goods and services.

Price of a Book

The amount of money charged for a book, determined by factors like publishing costs, author royalties, and market demands.

Budget Constraint

A restriction on the possible combinations of goods and services an individual can afford to buy given their income and the prices of the goods.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at various prices.