Samuel organized a limited partnership and is the only general partner. Francesca invested $25,000 in the partnership and was admitted as a limited partner with the understanding that she would receive 12% of the profits. After several unprofitable years, the partnership ceased business, at which time the partnership had liabilities $60,000 greater than its assets. How much money can the partnership creditors obtain from Francesca personally to satisfy the partnership debts?
A)$30,000
B)$25,000
C)$7,200
D)$3,000
E)$0

Question

Quizplus · Accepted Answer

As a limited partner, Francesca's liability is limited to her investment in the partnership, which is $25,000. She is not personally liable for the partnership's debts beyond her initial investment.

Samuel Organized a Limited Partnership and Is the Only General