The liability of partners for obligations contracted in the name and for the account of the partnership is …Group of answer choicesSolidary and primarySolidary and subsidiaryPro rata and primaryPro rata and subsidiary PreviousNext

The liability of the partners for any contract is usually:Group of answer choicesa joint and several liabilityjoint liabilitynil. Partners are not liable for contracts that they did not sign as there is no agency relationship between the partnersdependent on the circumstances. Partners will only be liable to outsiders if the partner who signed the contract had actual authority to do so

In which of the following circumstances will the rest of the partners NOT be liable for the conduct of a partner?Group of answer choicesA partner enters into a contract on behalf of the partnership, which is not expressly required by the partnership agreement, yet is within the scope of the firm’s normal businessAn outsider entered into a series of agreements with a partner in the name of the partnership. The other partners have no knowledge of this partner’s actions and the partner did not have the authority to enter into the agreements. However, the type of agreements entered into could be considered by an outsider to be of a type that such a firm would legitimately have enteredWhile acting within the scope of his/her apparent authority, a partner advises a client of the partnership to invest in a company which the partner knows is a mere shell company. This shell company has no shares, has no bank account and does not engage in business. The client followed the advice of the partner and invested as instructed. The client loses all of his money when the same partner takes the money and goes into hiding. The client seeks compensation in tort from the remaining partnersA partner, who is also a trustee of the firm, improperly employs trust property on account of the partnership without the knowledge of the other partners

The liability of a limited partner is limited to the amount he or she has put into the partnership.Group of answer choicesTrueFalse

Limited liability is a benefit for the owners of: Group of answer choicessole proprietorships and partnershipspartnershipscompanies/corporationsole proprietorships

In an LLP, the liability of partners is:a.Limited to their capital contributionb.Limited to their share of profitsc.Unlimited and jointd.Unlimited but several