What Is the Effect of a Limited Partner Making a Personal

question 25

Multiple Choice

What is the effect of a limited partner making a personal guarantee on behalf of a limited partnership of which the guarantor is a limited partner?

• A) It results in the limited partner being treated as a general partner for liability purposes.
• B) The guarantee is void because it goes against the nature of limited liability.
• C) The guarantee would be born by the general partners because they have unlimited liability.
• D) The limited partner will be held liable on the guarantee up to the amount of his investment in the limited partnership.
• E) The limited partner will be liable under the terms of the guarantee,but will otherwise continue to be treated as a limited partner.

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Definitions:

Wilhelm Wundt

Often regarded as the father of psychology, he established the first psychology laboratory at the University of Leipzig, Germany.

John B. Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior.

Sigmund Freud

An Austrian neurologist and the founding father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Introspection

The examination of one's own thoughts and feelings, reflection on one’s inner self.