Greg and Todd Form a Partnership and Start a Business

question 109

Multiple Choice

Greg and Todd form a partnership and start a business in which each has a 50 percent share of the profit. After a year, the firm goes bankrupt and has debts of $20,000. Greg has no money, but Todd has $25,000 in the bank. Todd must pay ________ of debt.

• A) $0 because in a partnership each partner must pay the same
• B) $0 because partners in a partnership have limited liability
• C) half, or $10,000
• D) $20,000

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