Question

If Southwest Development Company is a​ 50-50 partnership of Merideth Harper and Christopher​ Black,: ​(Select the best answer​ below.) A. Ms. Harper has unlimited​ liability, which means creditors can claim against her personal assets. B. Ms. Harper has limited​ liability, which guarantees that she cannot lose more than the​ $25,000 she invested. C. Ms. Harper has unlimited​ liability, which means creditors can only claim against the​ $25,000 she invested. D. Ms. Harper has limited​ liability, which is​ $30,000, or half of the​ $60,000 in unpaid debts.

Answer 1

The answer is: A) Ms. Harper has unlimited​ liability, which means creditors can claim against her personal assets.

Step-by-step explanation:

One of the most important characteristic of a partnership is unlimited liability. That means that in case the partnerships goes bankrupt, the partners are responsible for paying the partnership´s debt even with their own personal assets.

If one partner doesn´t have enough assets to meet his share of the debt, the other partner (or partners) can be held liable for the unpaid debt.