Devon and Keith Opened a Restaurant as a Partnership

question 42

Multiple Choice

Devon and Keith opened a restaurant as a partnership. Two years later, Keith left the restaurant, and Devon discovered that Keith had charged numerous expenses to their account. These expenses resulted in thousands of dollars worth of debt for the restaurant. What option does Devon have in this situation?

• A) He doesn't have to worry because, according to law, everyone is responsible for his/her own debts.
• B) Business creditors will pursue Keith alone since his signature authorized payments.
• C) Business creditors will expect Devon to pay at least half the debt since he owns 50 percent of the business.
• D) Business creditors will expect full payment from Devon.

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