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:

Free Trade

An economic policy that allows imports and exports between countries with few or no tariffs, quotas, or prohibitions.

Bilateral Trade Agreement

A trade pact between two countries to facilitate trading and commerce, reducing tariffs and other trade barriers to mutually benefit the economies of the two nations.

Safety Standards

Established norms and criteria designed to ensure products, services, or environments are safe for use or occupation.

Limit Inflow

Measures or policies set to restrict the amount of incoming resources, funds, or foreign currencies into a country or system.