With regard to liability of partners, which of the following is true?
A) A limited partner has unlimited liability beyond the amount of his initial investment.
B) A general partner could not be liable for losses suffered by a client because of misapplication of funds unless he knew about or took part in the misapplication.
C) A general partner who retires from the partnership by giving notice of his leaving to the other partners could still be found liable for debt pursuant to a contract made when he was a partner.
D) A general partner has limited liability for any loss suffered because of the negligent act (e.g., omission) of one of her partners.
E) The partnership, and thus the partners, are liable for any loss suffered because of a tort committed by its employee outside the course of his employment.

Question

Quizplus · Accepted Answer

A general partner who retires from a partnership can still be found liable for debts or obligations incurred while they were a partner, even after giving notice of their departure to the other partners. This is because their liability is based on the time when the contract was made or the debt was incurred, not on their current status as a partner.

With Regard to Liability of Partners, Which of the Following