Jack and Jill Form a Partnership

question 168

Multiple Choice

Jack and Jill form a partnership.Jack runs the business in New York, while Jill vacations in Hawaii.During the time Jill is away from the business, Jack increases the debts of the business by $20,000.Which of the following statements is true regarding this debt?

• A)Only Jack is personally liable for the debt, since he has been the managing partner during that time.
• B)Only Jill is personally liable for the debt of the business, since Jack has been working and she has not.
• C)Both Jack and Jill are personally liable for the business debt.
• D)Neither Jack nor Jill is personally liable for the business debt, since the partnership is a separate legal entity.

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Definitions:

Nuclear Families

A family unit consisting of two parents (a mother and a father) and their children, living together as a single household.

Poor

Having insufficient financial resources to meet the basic needs of life, such as food, clothing, and shelter.

Junk Mail

Unsolicited mail typically consisting of advertisements, promotional material, and other marketing content that recipients have not requested.

Characteristics

Distinctive features or qualities that define a person, object, or phenomenon.