Ask Question
BusinessBusiness
27 July, 10:21

Chris and Paul operate a business in which both have contributed $50,000 to the business's capitalization. Chris makes all business decisions and Paul made Chris sign a partnership agreement saying that Paul is only liable for partnership debts up to $50,000.

a. both are general partners

b. Chris is a general partner and Paul is a limited partner

c. Paul is a general partner and Chris is a limited partner

d. both are limited partners

+2
Answers (1)
  1. 27 July, 10:38
    0
    A. both are general partners

    Explanation:

    Both Chris and Paul are general partners. It is true that Chris makes all business decision and that made Paul irrelevant to the management of the partnership. And he made Chris signed a partnership agreement that he will be liable up to the extent of his capital contribution. Yet that is not a solid evidence towards third party liability in case of solvency. In order for him (Paul) to become a limited partner, he should be registered to the state as "limited partner" during the partnership's registration and that will be recorded into the Articles of Partnership. Otherwise, he is classified as general partner and is liable up to the extent of his personal asset. The contract (partnership agreement) that he and Chris had is valid only up to them but not into third party.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Chris and Paul operate a business in which both have contributed $50,000 to the business's capitalization. Chris makes all business ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
An example of an explecit cost of production would be
Answers (1)
Flyer company sells a product in a competitive marketplace. market analysis indicates that its product would probably sell at $48 per unit. flyer management desires a 12.5% profit margin on sales.
Answers (1)
If Starbucks raises its price by 5 percent and McDonald's experiences a 0.5 percent increase in demand for its coffee, what is the cross-price elasticity of demand? Instructions: Round your response to two decimal places.
Answers (1)
If you were the financial manager of an organization and were deciding whether to use debt or equity to fund a project, what factors would influence your decision?
Answers (1)
While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that?
Answers (1)
New Questions in Business
Which of the following is not a step in creating operating department income statements? eliminate the uncontrollable costs for each department. allocate indirect expenses across departments. prepare the departmental income statements.
Answers (1)
Suppose the supply equation is: Upper Q equals 12 plus 0.30 p. What is the price elasticity of supply if the market price is $16 ? nothing (round your answer to three decimal places ).
Answers (1)
This type of credit occurs when you charge a purchase at the time you buy the good or service
Answers (1)
Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and Finished Goods Inventory accounts had applied overhead costs of $59,300 and $38,000 in them, respectively.
Answers (1)
The Clean and Shiny Car Wash Company charges $95 to detail a car They detailed 75 cars during the past month. Their expenses are given in the table below Expense Rent of Space Supplies Advertising 1.
Answers (2)
Home » Business » Chris and Paul operate a business in which both have contributed $50,000 to the business's capitalization.
Sign Up Forgot Password?