Rosalee is a partner in Silver Dragon,a partnership consisting of the owners of a Chinese and American restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt,Rosalee is
A)not liable.
B)only liable to the amount of her capital contribution.
C)only liable in proportion to the number of partners in the firm.
D)personally liable to the full extent.

Question

Quizplus · Accepted Answer

As a partner, Rosalee is personally liable to the full extent of the debt incurred by Silver Dragon. Partnerships do not enjoy limited liability protection like corporations or LLCs, and each partner is fully responsible for the debts and obligations of the partnership. Therefore, if Silver Dragon fails to repay the debt for the new dining tables and chairs, Rosalee can be held personally liable for the full amount.

Rosalee Is a Partner in Silver Dragon,a Partnership Consisting of the Owners