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Which Statement Is True Regarding Any Responsibility James Has to Share

Question 45

Multiple Choice

Which statement is true regarding any responsibility James has to share in losses?


A) James has liability for losses only if the general partners are insolvent.
B) James has no liability for losses at all.
C) James has a legal obligation to share equally in losses with the general partners.
D) James would be responsible for one-half of any losses with the two general partners having liability for the other half.
E) James assumed no liability for the partnership beyond the capital he invested.

Correct Answer:

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