Cindy is one of fifty limited partners in a real estate investment limited partnership.The general partner is Evergreen Corporation.Evergreen Corporation invested $500,000 in the partnership,and each of the limited partners,who are all natural persons,invested $10,000.Evergreen has four shareholders.If the real estate partnership is dissolved at a time when it has debts exceeding assets,which of the following is true,assuming the limited partners took no steps to jeopardize their status as limited partners?
A) Because having a corporation means that no partner in the limited partnership has unlimited liability, the limited partners would have unlimited liability.
B) Because having a corporation means that no partner in the limited partnership has unlimited liability, the shareholders of the corporation would have unlimited liability.
C) Neither the corporation nor the limited partners would be required to contribute any assets toward the satisfaction of the unpaid obligations of the limited partnership.
D) The limited partners would not need to contribute any additional amounts toward satisfaction of the debts, but the assets of the corporation are available for this purpose.
E) The limited partners must contribute any and all amounts necessary to satisfy the debts, but the assets of the corporation cannot be seized.
Correct Answer:
Verified
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