Fact Pattern 27-3 ​Bryn, Cornell, and Duke Are General Partners in Equity Lending

question 31

Multiple Choice

Fact Pattern 27-3
​Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit, mortgage, and investment firm. Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.
-Refer to Fact Pattern 27-3. Bryn, Cornell, and Duke decide to admit Giselle as a new partner in Equity Lending. Giselle's liability for partnership debts incurred before her admission is​

• A) ​limited to her capital contribution to the firm.
• B) limited to her personal assets.
• C) ​nothing.
• D) ​unlimited.

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Definitions:

Tradeoff

The concept of giving up one benefit or advantage in order to gain another, considered more desirable.

Income Tax Revenue

The monetary income that the government receives from taxing the income of individuals, corporations, estates, and trusts.

Welfare System

A government program that provides financial aid and services to support groups within society who are unable to support themselves financially.

Efficiency And Equality

The balance between optimizing resource use and distributing goods and services fairly among society members.