Fay Is Admitted to Global Associates,an Existing Partnership

question 10

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 her 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:

Support Roles

Positions within an organization designed to assist and enable the main functions or activities to perform more efficiently.

Primary Roles

Fundamental responsibilities or functions assigned to an individual or entity in a specific context.

Location Economies

Cost advantages achieved by a firm due to its geographical location, influencing factors like production, logistics, and access to markets or resources.

Sheet Glass

A type of glass made by floating molten glass on a bed of molten metal to produce a flat surface, commonly used in windows, mirrors, and glass doors.