QUESTION 5Ronald and Emily form Rosebush Limited Partnership. Ronald contributes $20,000 and becomes a general partner. Emilycontributes $20,000 and becomes a limited partner.At the end of the first year of operation, a third party sues Rosebush, L.P. for a tort.What is the potential liability of Ronald and Emily?O Ronald's liability is $20,000; Emily's liability is $20,000.O Ronald's liability is unlimited; Emily's liability is $20,000.O Ronald's liability is unlimited; Emily's liability is unlimited.O Ronald's liability is $20,000; Emily's liability is $0.QUESTION 6Under the concept of joint and several liability, who is liable for the debts of a general partnership?O The partner who is originally responsible for the debt will be the only party liable for the debt.O Each partner is potentially liable for the entire debt of the partnership.The partnership is responsible for the debt. If the partnership can't pay the debt, the creditor has no other recourse.

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QUESTION 5 Ronald and Emily form Rosebush Limited Partnership. Ronald contributes $20,000 and becomes a general partner. Emily contributes $20,000 and becomes a limited partner. At the end of the first year of operation, a third party sues Rosebush, L.P. for a tort. What is the potential liability of Ronald and Emily? Ronald's liability is $20,000; Emily's liability is $20,000. O Ronald's liability is unlimited; Emily's liability is $20,000. O Ronald's liability is unlimited; Emily's liability is unlimited. Ronald's liability is $20,000; Emily's liability is $0. QUESTION 6 Under the concept of joint and several liability, who is liable for the debts of a general partnership? O The partner who is originally responsible for the debt will be the only party liable for the debt. O Each partner is potentially liable for the entire debt of the partnership. The partnership is responsible for the debt. If the partnership can't pay the debt, the creditor has no other recourse.

QUESTION 5 Ronald and Emily form Rosebush Limited Partnership. Ronald contributes $20,000 and becomes a general partner. Emily contributes $20,000 and becomes a limited partner. At the end of the first year of operation, a third party sues Rosebush, L.P. for a tort. What is the potential liability of Ronald and Emily? Ronald's liability is $20,000; Emily's liability is $20,000. O Ronald's liability is unlimited; Emily's liability is $20,000. O Ronald's liability is unlimited; Emily's liability is unlimited. Ronald's liability is $20,000; Emily's liability is $0. QUESTION 6 Under the concept of joint and several liability, who is liable for the debts of a general partnership? O The partner who is originally responsible for the debt will be the only party liable for the debt. O Each partner is potentially liable for the entire debt of the partnership. The partnership is responsible for the debt. If the partnership can't pay the debt, the creditor has no other recourse.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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