Kendra and Amelia operate an art gallery, owned as a partnership. Kendra disappeared. A few days later, Amelia learned that Kendra embezzled $75,000 of government grant money through the company. Is Amelia responsible for the $75,000?
A) No, because the embezzlement was done by Kendra.
B) Yes, but only if Amelia was aware of the embezzlement.
C) Yes, because Amelia and Kendra are partners.
D) No, because partners are not responsible for the wrongful acts of other partners.
E) Yes, but only to the extent of Amelia's investment into the partnership.

Question

Quizplus · Accepted Answer

In a partnership, each partner is jointly and severally liable for the actions of the other partners that are taken in the course and scope of the partnership business. This includes wrongful acts such as embezzlement, even if one partner was unaware of the actions of the other.

Kendra and Amelia Operate an Art Gallery, Owned as a Partnership