Question

Glossamer Inc., a company owned by George and Alex, faces huge debts and is eventually shut down due to bankruptcy. The company's financial loss affects Alex personally, and his house and other personal assets are seized by the bank. However, George's personal assets are not affected. This is most likely because George is a(n) _____.
A. general partnerB. limited partnerC. active partnerD. quasi partner

Answer 1

Answer:

B. limited partner

Explanation:

A limited partner is a partner whose liability is limited to the amount invested in the business. A limited partners personal assets are not affected by bankruptcy.

A general partner is a partner who has unlimited liabilities - his personal assets can be seized if there is a bankruptcy.

Alex is a general partner.

A quasi partner is a partner who has left a partnership but left his shares or initial investment in the business.

An active partner is a partner who is involved in the daily operations of the business.

I hope my answer helps you.