Joe Tootoosis and Frank Inn were working partners in a partnership that failed; at failure, the partnership debt was $100,000. If Frank Inn has no assets, Joe Tootoosis could be held liable for the entire $100,000.

Question

Quizplus · Accepted Answer

In a general partnership, each partner is personally liable for the debts and obligations of the partnership, regardless of which partner incurred the debt or obligation. Therefore, if one partner has no assets to contribute, the other partner may be held liable for the entire amount of the debt.

Joe Tootoosis and Frank Inn Were Working Partners in a Partnership