AKMA is a general partnership with three partners (Ken, Steve and Mike). In 2016 the partnership had fallen in “Hard Time” in compensate the firm’s employees. Ken went to the bank and obtained a $100,000 business loan, signing his name to the loan agreement as well as the name of the partnership. Further, Steve and Mike were concerned about partnership liability for the $100,000 loan, as well as their own personal liabilities for the loan. • Answer the questions below and state the rule of law of each.
A. Is the general partnership AKMA responsible for the $100,000 loan?
B. Are Steve and Mike personally liable for the loan?