Jamie and Maria invested all of their savings in a small pizzeria they opened outside the University of Western Kentucky. They operated the business as a general partnership. After 11 months they business went broke and Jamie and Maria were left with outstanding bills of $37,500, which is more than their investment in the company. Jamie and Maria can:

Question

Marely Evans

Business

30 October, 12:56

Jamie and Maria invested all of their savings in a small pizzeria they opened outside the University of Western Kentucky. They operated the business as a general partnership. After 11 months they business went broke and Jamie and Maria were left with outstanding bills of $37,500, which is more than their investment in the company. Jamie and Maria can:

+4

Answers (1)

Know the Answer?

Sonia Frey · Answer 1

Answer: Sell their personal assets

Explanation: In the given case, James and Maria were the owners of a firm which has a partnership structure and not the company structure. As per the law, the owners and the firm in a partnership structure would not be considered as two separate legal entities.

In case of any default or liquidation, the personal assets of the owners of the firm could be taken into consideration for repayments of debt.

Hence Maria and Jamie can sell their assets to repay $37,500.