Rashmi and Karina opened a restaurant in partnership.Two years later,Karina left the restaurant,and Rashmi discovered that Karina had incurred numerous expenses to their account.These expenses resulted in thousands of dollars' worth of debt for the restaurant.From the following,identify an accurate statement about this situation.
A)Rashmi doesn't have to worry because,according to law,everyone is responsible for his/her own debts.
B)Rashmi doesn't have to worry because business creditors will pursue Karina alone since her signature authorized payments.
C)Business creditors will expect Rashmi to pay at least half the debt since she owns 50% of the business.
D)Business creditors will expect full payment from Rashmi.

Question

Quizplus · Accepted Answer

In a partnership, each partner is jointly and severally liable for the debts of the partnership. This means Rashmi could be held responsible for the full amount of the debt, not just her share.

Rashmi and Karina Opened a Restaurant in Partnership