A partnership can be general partnership or a limited liability partnership. In case of a general partnership, the partners have unlimited liability but in case of a limited liability partnership, the liability of partners is limited to the amounts contributed by them in the partnership. To determine: the amount of money that can be obtained from personal assets of the partner. In case of a limited liability partnership, a partner is liable to the extent of the capital amount contributed by him in the partnership. The personal assets of a limited liability partner’s can not be used to pay off the partnership debts. In the given case, Carley is a limited liability partner who has invested $20,000 in the partnership. Hence he is liable for the payment of $20,000 only and any excess unpaid liability cannot be paid from his personal assets.

8th Edition

ISBN: 9781259533006

Author: John J Wild

Publisher: McGraw-Hill Education

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