Which One of the Following Statements Is Correct with Respect

question 121

Multiple Choice

Which one of the following statements is correct with respect to the liability of partners?

• A) When a partner enters into a partnership arrangement, he can only lose what he has invested in that partnership.
• B) If a third party is injured because of an activity carried on by the partnership, that third party can only go after the personal assets of a partner if the assets of the partnership are not enough to provide compensation and the damage was actually caused by the conduct of that partner.
• C) A general partner is responsible, independent of what he has invested, for any losses caused to outsiders through the partnership business if the assets of the partnership are not enough to cover the claim.
• D) If there are three equal partners in a partnership, an injured third party can only collect one third of the claim from any one partner.
• E) A partner can protect himself from any liability beyond his investment if one of the other partners specifically agrees in the partnership agreement to be responsible for all such liability.

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Definitions:

Reminds

Acts of causing someone to remember or think of something, typically through a prompt or cue.

Natural Reward Strategies

Types of compensation designed to make aspects of a task or activity more enjoyable by building in certain features or by reshaping perceptions to focus on the most positive aspects of the task and the value it holds.

Enjoyable

Providing pleasure or delight; capable of making one happy or satisfied.

Task

A piece of work to be done or undertaken, typically a specific responsibility or duty.