The Jackson-Chan Partnership Is Terminated When Creditor Claims Exceed Partnership

question 112

Multiple Choice

The Jackson-Chan partnership is terminated when creditor claims exceed partnership assets by $30,000. Chan is a millionaire and Jackson has no personal assets. Jackson's partnership interest is 75% and Chan's is 25%. Creditors

• A) must collect their claims equally from Chan and Jackson.
• B) may collect the entire $30,000 from Chan.
• C) must collect their claims 75% from Jackson and 25% from Chan.
• D) may not require Chan to use his personal assets to satisfy the $30,000 in claims.

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