Cameron and Andrew each invested $45 000 in a partnership where they agreed to share profits as Cameron: 30%; Andrew 70% . The partnership business was unsuccessful and now has zero assets. In addition, they are being sued for $100 000 by a supplier for non-payment of invoices. What is the amount for which Andrew could be held personally responsible if the lawsuit is successful? (Ignore any possible legal costs.)
A) Zero
B) $45 000
C) $70 000
D) $100 000

Question

Quizplus · Accepted Answer

Since the partnership has zero assets and they are being sued for $100,000, both partners are personally responsible for the entire debt. The division of profit does not affect their liability for debts, meaning each could be held responsible for the full amount if the other cannot pay.

Cameron and Andrew Each Invested $45 000 in a Partnership