Dixon CPA,an accounting partnership,makes an offer to Nessa to become one of their partners.Dixon recently took out a loan for $2 million.Nessa is concerned that,if she became a partner,she could be held personally liable for the existing loan.Which of the following statements best describes the liability Nessa could face if she becomes partner?

Question

Quizplus · Accepted Answer

A)When a partnership adds another partner,the new partner assumes limited liability for any obligations that occurred before he or she was added.The new partner cannot be held personally liable for them,but the capital the new partner adds can be used to pay them off.
B)When a partnership adds another partner,the new partner assumes limited liability for any obligations that occurred before he or she was added.The new partner cannot be held personally liable for them,but the capital the new partner adds can be used to pay them off.
C)When a partnership adds another partner,the new partner assumes limited liability for any obligations that occurred before he or she was added.The new partner cannot be held personally liable for them,but the capital the new partner adds can be used to pay them off.
D)When a partnership adds another partner,the new partner assumes limited liability for any obligations that occurred before he or she was added.The new partner cannot be held personally liable for them,but the capital the new partner adds can be used to pay them off.
E)When a partnership adds another partner,the new partner assumes limited liability for any obligations that occurred before he or she was added.The new partner cannot be held personally liable for them,but the capital the new partner adds can be used to pay them off.

Dixon CPA,an Accounting Partnership,makes an Offer to Nessa to Become