John, Samuel, and Jim Are General Partners in the Development

question 59

Multiple Choice

John, Samuel, and Jim are general partners in the development of an electric car.Jim pours all his money into the project, but it never seems to work out.Eventually the partnership and Jim cannot meet their daily obligations, and the partnership is dissolved.Jim files for bankruptcy.If the partnership assets are insufficient to pay all claims against the partnership:

• A) Jim's personal assets are not available for the partnership debts because he has limited liability.
• B) the bankruptcy court must follow the doctrine of marshaling of assets.
• C) the trustee in bankruptcy must seek recovery of the deficiency first from John and Samuel.
• D) Jim is released from liability because of the bankruptcy proceedings.

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Definitions:

Secretion

The mechanism whereby compounds are synthesized and expelled from a cell, gland, or organ, either to fulfill a specific task in the body or to be excreted.

Filtrate

The liquid that has passed through a filter, removing certain particles or substances.

ADH

Antidiuretic hormone, also known as vasopressin, a hormone produced by the hypothalamus and released by the posterior pituitary gland, which helps control the balance of water in the body.

Collecting Duct

Part of the renal tubule system in the kidney that is responsible for the concentration and transport of urine.