Tomlin Is a Partner in the Accounting Firm of TSY

question 89

Multiple Choice

Tomlin is a partner in the accounting firm of TSY. He embezzles client funds. Shay and Yalinda are his partners. Since Tomlin committed the tort within the scope of his partnership duties, are Shay and Yalinda liable?

• A) Yes, partners have common liability.
• B) Yes, partners have joint and several liability.
• C) Partners are only liable in accordance with the percentages used for the allocation of profits.
• D) Partners are liable in accordance with the percentages used for the allocation of losses.
• E) No, only Tomlin is responsible.

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Definitions:

Expected Sales

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Master Budget

A comprehensive financial planning document that includes all of a company’s budgets and financial plans, consolidating them into an overall budget.