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ValentinkaMS [17]
3 years ago
7

Marita and Alexandra set up a Limited Partnership. Marita is named General Partner and Alexandra is named Limited Partner. Marit

a embezzles funds from the investors. Is Alexandra liable for Marita's indiscretion?
Business
1 answer:
tresset_1 [31]3 years ago
4 0

Answer:

No

Explanation:

In a partnership form of business ownership, a limited partner enjoys limited liability to the debts of the business. Alexandra is named as a limited partner. He should not participate in the day to day management of the business.

Marita is a general partner and is involved in managing business operations. He has unlimited liabilities to the debts of the business. If Marita embezzles investors' funds, Alexandra is only liable to the extent of his capital contribution. His personal properties cannot be attached to business debts. Alexandra can only be liable if he participates in the management of the business. Marita, on the other hand, is fully responsible for business debts.

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