Fay Is Admitted to Global Associates, an Existing Partnership

question 49

Multiple Choice

Fay is admitted to Global Associates, an existing partnership. A partnership debt incurred before the date of her admission comes due. Fay is

• A) not liable for the debt.
• B) only liable for the debt up to the amount of his capital contribution.
• C) personally liable only to the extent the other partners do not pay.
• D) personally liable to the full extent of the debt.

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Definitions:

Principled Negotiation

A negotiation strategy that focuses on the merits of an issue and seeks mutual gains or objectives rather than positioning.

Firm Flexibility

The ability to be resolute in decision-making while being adaptable to changing circumstances.

Inherent Interests

Fundamental or natural concerns, desires, or motivations intrinsic to an individual or group.

Collaborative Approach

A strategy that involves working together cooperatively to achieve a common goal.