Yolinda and Wes decide to go into business together as a partnership. As part of their business, they lease a car, with each paying half the monthly expenses. Unfortunately, the business does not make any money. After 2 years, Yolinda decides to leave and take a job with another employer. Wes, on the other hand, decides to make a go of the business. Given this information, which of the following is true?

Question

Abel Giles

Business

21 September, 16:08

Yolinda and Wes decide to go into business together as a partnership. As part of their business, they lease a car, with each paying half the monthly expenses. Unfortunately, the business does not make any money. After 2 years, Yolinda decides to leave and take a job with another employer. Wes, on the other hand, decides to make a go of the business. Given this information, which of the following is true?

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Answers (1)

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Austin Sherman · Answer 1

If Yolinda stops making her share of the car expenses, Wes will be liable for Yolinda's share. This is because, they are in a partnership, since none of them is a limited partner, they both have unlimited liability to the business in case there are losses or outstanding debt that needs to be paid. Even if one partner leaves and stops paying expenses, the remaining partners have to cover them in full. This makes choice B correct.