Gerald and Tanji Are General Partners in a Partnership with Mafasa

question 37

Multiple Choice

Gerald and Tanji are general partners in a partnership with Mafasa and Rolf,who are also partners but with narrowly defined rights.What disadvantage do Mafasa and Rolf share?

• A) Their losses as limited partners are restricted to their capital investments.
• B) What constitutes partaking in management is difficult to define.
• C) Participation in management activities will risk their unlimited liability status.
• D) Public notification of their identity and the amount of capital contribution is required.

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Definitions:

Remedies

Legal remedies involve the methods and means through which a court of law enforces a right, imposes a penalty, or makes another court order to impose its will.

Cancelling Contract

The act of terminating an agreement or contract before its fulfillment or end date.

UCC

Stands for the Uniform Commercial Code, a set of laws that regulate sales and commercial transactions in the United States.

Notice Requirement

Legal obligation to inform or provide official notice to parties involved in an agreement or legal process.