With Regard to Liability of Partners, Which of the Following

question 109

Multiple Choice

With regard to liability of partners, which of the following is true?

• A) A limited partner has unlimited liability beyond the amount of his initial investment.
• B) A general partner could not be liable for losses suffered by a client because of misapplication of funds unless he knew about or took part in the misapplication.
• C) A general partner who retires from the partnership by giving notice of his leaving to the other partners could still be found liable for debt pursuant to a contract made when he was a partner.
• D) A general partner has limited liability for any loss suffered because of the negligent act (e.g., omission) of one of her partners.
• E) The partnership, and thus the partners, are liable for any loss suffered because of a tort committed by its employee outside the course of his employment.

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist who founded the discipline of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Primary Process

A term from psychoanalytic theory that describes the irrational and instinctual thought processes of the unconscious mind.

Condensation

In psychoanalytic theory, the method of primary process thinking in which several ideas are compressed into one.

Displacement

In psychoanalytic theory, the defense mechanism that redirects an impulse from a dangerous target to a safe one.