Trish is a partner in an LLP,and the partnership is having a cash flow problem.To alleviate the problem,the partnership has initiated a capital call for each partner to contribute an additional
$25,000 to the business.If Trish cannot come up with the necessary funds,she may be forced to sell her interest in the partnership.

Question

Quizplus · Accepted Answer

In an LLP, partners have limited liability and are not personally responsible for the debts and obligations of the partnership. However, they do have a responsibility to contribute capital to the business. If a partner cannot contribute the required capital, they may be forced to sell their interest in the partnership. Therefore, if Trish cannot come up with the necessary funds for the capital call, she may be forced to sell her interest in the partnership.

Trish Is a Partner in an LLP,and the Partnership Is