Colleen Is Admitted to the Partnership of Elmore & Monticello

question 3

Multiple Choice

Colleen is admitted to the partnership of Elmore & Monticello and makes an initial capital contribution of $10,000.Two years later,when liabilities of the partnership exceed its assets by $20,000,the firm is dissolved.Paul had loaned the firm $5,000 six months before Colleen was admitted;Scott had loaned the firm $8,000 three months after Colleen was admitted.Colleen has:

• A) no liability to Paul.
• B) liability to Paul to the extent of her capital contribution and is personally liable to Scott.
• C) no liability to Scott.
• D) liability to Paul and Scott only to the extent of her capital contribution.

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Definitions:

Cork Cambium

A layer of tissue in plants that produces cork, a protective barrier for the surface of stems and roots.

Ground Tissue

The bulk of most plant tissues, filling the space between the epidermis and vascular tissue systems, involved in photosynthesis, storage, and support.

Cork Cambium

A layer of tissue in plants that produces cork, a protective and waterproof material found on the outer surface of bark.

Cork Parenchyma

One or more layers of parenchyma cells produced inwardly by the cork cambium.