The Unlimited Liability of Partners Means That Not Only Can

question 115

True/False

The unlimited liability of partners means that not only can they lose their entire investment in the business, but their personal assets are also at risk, such as their home and car.

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Definitions:

Joint Tenancy

A form of property ownership where two or more individuals hold equal shares and rights in the property, with a right of survivorship.

Memorandum

A written document or note that helps in remembering or conveying information, intentions, or understanding between parties.

Constructive Trust

An equitable remedy that treats a person as if they were a trustee, usually because they have wrongfully obtained or held legal right to property they should not benefit from.

Undue Influence

Undue Influence occurs when one party uses its position of power over another to induce the latter into making a legal agreement that they would not have made under normal circumstances.