Sonya and Davi are going to open a sporting goods store.They sign a written limited partnership agreement naming Davi as a limited partner and Sonya as the general partner.Sonya files a certificate of limited partnership with the state.Sonya contributes $100,000 toward the start-up,while Davi contributes $200,000.They agree to split profits evenly because Sonya will be working in the store and operating the day-to-day business.About a month after they open,the business is not doing well,so Davi starts becoming more involved.Soon he is requiring that Sonya approve all purchases with him,and Davi is actively directing Jack,the sole employee.One day,Geoff,a customer,is injured when a bowling ball falls off a shelf and shatters his foot.Geoff sues and is awarded a judgment of $1 million.

Question

Quizplus · Accepted Answer

A) When Davi began taking an active management role in the business, he forfeited his rights as a limited partner and will be treated like a general partner.
B) When Davi began taking an active management role in the business, he forfeited his rights as a limited partner and will be treated like a general partner.
C) When Davi began taking an active management role in the business, he forfeited his rights as a limited partner and will be treated like a general partner.
D) When Davi began taking an active management role in the business, he forfeited his rights as a limited partner and will be treated like a general partner.

Sonya and Davi Are Going to Open a Sporting Goods