Nina and Owen Are General Partners in Property Management L

question 7

Multiple Choice

Nina and Owen are general partners in Property Management L.P., a limited partnership. Without Nina's knowledge or consent, Owen defrauds the firm's clients, resulting in the firm's liability for the losses. The limited partners file a suit against Nina to recover their investments. She is most likely liable

• A)if the clients are viewed as innocent third parties.
• B)in a state that does not protect innocent partners from fraud suits.
• C)under any circumstances.
• D)under no circumstances.

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