Asked by
Saloni Patel
on Nov 10, 2024
Verified
Which of the following is correct with respect to the law of partnership?
A) A partnership cannot be created inadvertently.
B) Joint and several liability means that each partner can be sued several times.
C) Each partner is vicariously liable for the wrongful acts of their partners committed in the course of the partnership business.
D) Partners are only liable for the torts of their partners if they in fact knew that the wrongful conduct was taking place.
E) Partners have unlimited liability, meaning that they can lose up to the amount they have invested in the business.
Vicariously Liable
Legal principle where one party is held responsible for the actions or omissions of another party.
Joint
Pertaining to rights, obligations, or ownership shared between two or more parties.
Unlimited Liability
A legal structure where the owners of a business are personally responsible for all of the debts and obligations of the business, without any limit.
- Comprehend the effects that roles and obligations in a partnership have on personal financial accountability and the sharing of earnings.
Verified Answer
MB
Learning Objectives
- Comprehend the effects that roles and obligations in a partnership have on personal financial accountability and the sharing of earnings.