Rachel and Cyndi Started a Retail Business Called Zebra Toy

question 25

Multiple Choice

Rachel and Cyndi started a retail business called Zebra Toy Company.The business is operated as a partnership.Under partnership law:

• A) Rachel is personally liable for any business contracts entered into by Cyndi.
• B) Rachel is personally liable for any business debts, regardless of whether she or Cyndi created the obligation.
• C) Rachel is personally liable for any negligent act committed by Cyndi in the scope of the business activity.
• D) All the above.

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Definitions:

Broker

An individual or firm that acts as an intermediary between buyers and sellers, typically in financial or real estate transactions, facilitating deals in exchange for a commission or fee.

Share Options

Rights granted by a company to its employees or directors to buy shares in the company at a fixed price for a limited period.

Exercise Price

The price at which an option holder can buy (call option) or sell (put option) the underlying asset or security by a predetermined date.

Ordinary Shares

Equity securities representing ownership in a company, giving shareholders voting rights and a share in the company's profits.