Asked by Tashae Thomas on Jun 12, 2024
Verified
Mr.Green enters into a partnership with IT Doctors LLP.Mr.Green's capital investment into the business is $10,000.Shortly after joining the new business,a client sues the IT Doctors LLP and wins a judgment of $750,000.How much is Mr.Green liable for?
A) $10,000
B) $100,000
C) $750,000
D) $0
Capital Investment
Funds spent by a company to acquire or upgrade physical assets, such as property, industrial buildings, or equipment, to improve its business capacity or efficiency.
- Detail how a partner's separation or the admission of a new partner influences the liabilities and operational activities of a partnership.
- Understand the effects of modifications in partnership composition on the obligations toward creditors and liabilities.
Verified Answer
MT
Mykaela TaketaJun 19, 2024
Final Answer :
A
Explanation :
If a new partner enters an LLP,the RUPA provides that the partner has no liability for the obligations of the LLP beyond his capital contribution.
Learning Objectives
- Detail how a partner's separation or the admission of a new partner influences the liabilities and operational activities of a partnership.
- Understand the effects of modifications in partnership composition on the obligations toward creditors and liabilities.
Related questions
Xavier,Yellie,and Zelda Are Partners of Koral Associates ...
A(n)________ in the Nature or Time of Payment of an ...
Poxabogue Associates,a Partnership,is Dissociated by the Retirement of a Partner ...
________ May Be Proved by a Creditor's Knowledge of a ...
Harry, Clyde, and Pete Carried on Business in Partnership as ...