Flo and Gil Are General Partners in High Finance, a Limited

question 8

Multiple Choice

Flo and Gil are general partners in High Finance, a limited partnership. Without Flo's knowledge or consent, Gil defrauds potential investors into buying limited partnerships in the firm and steals the amounts of their investments. In a suit by those partners against Flo to recover for their losses, she is most likely liable

• A) ​if the investors are viewed as innocent third parties.
• B) ​if the investors are construed as limited partners.
• C) ​under any circumstances.
• D) ​under no circumstances.

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Definitions:

Bond Financing

A method of raising capital through the issuance of bonds which are to be repaid at a specified maturity date along with periodic interest payments.