Question

question 25 (2.5 points)
ronnie is a general partner in organic oasis, a partnership consisting of the owners of an organic restaurant. organic oasis owes money to petes produce for six weeks of deliveries. with respect to this debt, ronnie is
a) only liable to the amount she wants to pay.
b) personally liable to the full extent.
c) only liable in proportion to the number of partners in the firm.
d) not liable.
question 26 (2.5 points)
if steve and thomas, partners in awesome auto body shop, decide to to close the store, pay off all the creditors and then split the remaining assets, they have engaged in ______________ of the partnership.
a) dissolution
b) dissociation
c) estoppel

Explanation:

For Question 25: In a general partnership, general partners have unlimited liability. This means they are personally liable for all the debts of the partnership. So Ronnie, as a general partner, is personally liable to the full extent of the debt.
For Question 26: Dissolution of a partnership involves the winding - up of the business, which includes paying off creditors and distributing remaining assets. Steve and Thomas closing the store, paying creditors, and splitting remaining assets is the process of dissolution. Dissociation is when a partner leaves the partnership but the partnership may continue. Estoppel is a legal principle that prevents a person from denying something.

Answer:

Question 25: B. personally liable to the full extent
Question 26: A. dissolution