Jim and Rob are partners in a consulting business. Jim's initial contribution was $30,000, Rob's was $20,000. Emily is a limited partner who contributed $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. Jim pays the entire $60,000 debt to the Vancouver Credit Union. How much can he collect from Emily?

Question

Quizplus · Accepted Answer

Emily, as a limited partner, is only liable for the amount of her investment in the partnership, which is $10,000. Since Jim paid off the debt to the Vancouver Credit Union, he cannot collect any amount from Emily beyond her initial contribution, which she has already made.

Jim and Rob Are Partners in a Consulting Business