Glen,Dale,and Al are partners who own Fizz.Glen made a capital contribution of $5000,Dale's was $15 000,and Al's was $10 000.Glen is a general partner and he oversees the management of the Fizz business.The partnership borrowed $30 000 from the bank.The partners have no agreement relating to the sharing of profits and losses.Fizz became insolvent and unable to repay the loan.The bank sued Dale personally and recovered the full $30 000 from him.Dale then sued Glen.When Dale's lawyer provided him with advice,what amount did she likely indicate he would be able to legally recover from Glen?
A) $5000
B) $10 000
C) $15 000
D) $20 000

Question

Quizplus · Accepted Answer

Dale is entitled to recover half of the amount he paid to the bank, which is $15,000. This is because Glen and Dale are general partners, and as such, they are jointly and severally liable for the debts of the partnership.

Glen,Dale,and Al Are Partners Who Own Fizz