'Joint and Several Liability' of Partners Means That If a Third

question 19

Multiple Choice

'Joint and several liability' of partners means that if a third party sues one partner and recovers some but not all of the full amount of the debt they can:

• A)obtain a floating charge over the assets of the partnership.
• B)sue the other partners for the balance.
• C)sue the partnership for the balance.
• D)seek punitive damages and compounding interest.

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Definitions:

Interviews

A formal conversation between two or more people, where questions are asked by the interviewer to obtain information from the interviewee.

Marginal Cost

The cost of producing one additional unit of a good or service, computed by dividing the change in total cost by the change in quantity produced.

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of the other party once the contract has been concluded.

Automobile Driving

The operation and control of a car, including the mastery of various techniques and understanding of road rules for safe transportation.