Dave and His Sister Chris Made Unusual Kites

Dave and his sister Chris made unusual kites. They both created the designs; Dave made the patterns. Friends had always wanted to buy their kites. After Chris completed a college marketing program, she began to talk to Dave about going into business selling kites. Ed, a friend of Chris's, wanted to be involved. He said he could buy the supplies and do the other odd chores. They decided to try to make a go of it and to share the profits as follows: Dave 35%, Chris 35%, and Ed 30%. Things went well for 7 months. They even hired George to deliver kites to the increased number of stores buying them. Unfortunately for business, Chris and Ed became romantically involved. This was followed by a heated dispute. Ed disappeared with $1,300 collected from customers and $600 worth of supplies, which he had bought on behalf of the business from their regular supplier. At about the same time George negligently broke a customer's $200 lamp when he was delivering a kite. On these facts, which of the following is true?

A) Only Chris would be responsible Ed's misapplication of the customers' money.
B) When Ed buys supplies for the business on credit, he is acting as an agent for the business and he alone is liable for those debts.
C) Although George broke the lamp while delivering kites, the partners are not liable, because it was George's own fault.
D) Since Dave, Chris, and Ed did not sign a partnership agreement, they are not considered a general partnership.
E) If the partnership funds are not sufficient to pay the partnership debts, the creditors can look to the individual partners for payment.