Sam Muller and Geoffrey Robinson Enter into a Limited Partnership

question 16

Multiple Choice

Sam Muller and Geoffrey Robinson enter into a limited partnership in which Sam is the general partner and Geoffrey is the limited partner.They borrow $50, 000 to start a business.Keeping all rules of naming their businesses in mind, they start a law firm named Robinson-Muller Legal Associates.Martin Humphrey joins them after eleven months as a general partner but does not include his surname in the name of the business.If the business fails, which of the following holds well?

• A)Only Sam, being the sole general partner is liable to the creditor.
• B)Martin has unlimited personal liability for not including his surname in the name of the business.
• C)Geoffrey is liable as a general partner as he included his surname in the business with full knowledge.
• D)All three partners are equally liable to the creditor, irrespective of including their surname in the title of the business.

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