Jim, Rob and Emily are partners in a consulting business. Jim's initial contribution was $30,000, Rob's was $20,000 and Emily's was $10,000. The partnership also borrows $60,000 from Vancouver Credit Union. The partners agree that profits and losses will be shared in proportion to their capital contributions. The business fails. What is Jim's liability to Vancouver Credit Union?

Question

Quizplus · Accepted Answer

Jim, as a partner, is personally liable for all the debts of the partnership unless otherwise agreed. Since the partnership borrowed $60,000 from Vancouver Credit Union and the business fails, all partners are jointly and severally liable for the full amount, including Jim.

Jim, Rob and Emily Are Partners in a Consulting Business