Len,Jill,and Mark Own a Partnership Called Splats

question 35

Multiple Choice

Len,Jill,and Mark own a partnership called Splats.Len's capital contribution to the partnership was $25 000,Jill's was $12 500 and Mark's was $20 000.Jill is duly registered as a limited partner and has acted solely as a financier.There is no agreement on sharing profits or losses between the partners and none of them has drawn any income from Splats.The partnership borrowed $40 000 from the bank,but Splats eventually became insolvent and was unable to repay the loan.The bank sued Len and recovered the full $30 000 from him.When Len's lawyer gave him advice,what amount would he likely indicate Len is entitled to legally recover from Jill?

• A) $10 000
• B) $0
• C) $12 500
• D) $20 000

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Definitions:

Sensory Receptors

Specialized cells or structures in the body that detect stimuli from the environment and convert them into neural signals.

Blood Vessels

Tubes in the body through which blood circulates, including arteries, veins, and capillaries.

Circular Disk

A flat, round geometric shape or object that has a circular boundary.

Iris

The colored part of the eye surrounding the pupil, responsible for controlling the diameter of the pupil and thus the amount of light reaching the retina.