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Does a New Partner in a Firm Have Personal Liability

question 26

Essay

Does a new partner in a firm have personal liability for debts existing when he joined the firm? What should a prospective partner do to avoid unreasonable liability?


Definitions:

Plant Assets

Long-term tangible assets used in the operations of a business that are not intended for sale.

Natural Resources

Natural resources, including minerals, forests, water, and fertile land, that can be exploited for financial advantages.

Intangibles

Non-physical assets such as patents, trademarks, copyrights, goodwill, and brand recognition that have value.

Salvage Value

The projected remaining value of an asset once it has reached the end of its useful life and is no longer viable for production.

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