Fact Pattern 17-1 Brad Is a General Partner,and Carlos and Dora Are Limited

question 72

Multiple Choice

Fact Pattern 17-1
Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership.
-Refer to Fact Pattern 17-1.Carlos's assignment of his interest in Eastside to Good Credit Corporation results in​

• A)nothing with respect to Eastside's existence.
• B)the maturity of Eastside's debts.
• C)the suspension of Eastside's business.
• D)the termination of Eastside's legal existence.

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Definitions:

Debt-Equity Ratio

An indicator of the financial distribution between shareholder equity and debt in asset financing.

Total Debt

The sum of all short-term and long-term liabilities owed by a company, reflecting its overall debt load.

Equity

The value of ownership interest in a company, represented by the shares held by investors.