Discuss the advantage of the limited partnership


Assignment Task: Please answer those questions accordingly for me.

Question 1: Partners' meetings and participating in all major decisions concerning the limited partnership. However, the partnership becomes insolvent anyway. Creditors are left with thousands of dollars' worth of unpaid bills. The limited partnership and the general partners have no substantial cash or other assets. If the partnership is in a state that follows RULPA, might creditors prevail in a lawsuit against Beth Henderson personally to recover their losses? Why or why not? Brian, Jeanne, and William have formed OakRidge Limited Partnership, a limited partnership for shopping center development and management. William is the general partner and Brian and Jeanne are limited partners. The limited partnership is about to enter into an agreement to purchase a new shopping center; however, the bank that is lending them the money wants personal guarantees from each partner. If the limited partnership is governed by the laws of a state that follows the Revised Uniform Limited Partnership Act, would Brian and Jeanne be able to guarantee the obligation of the OakRidge Limited Partnership without risking their limited liability status?

Question 2: Suppose that Jake, Bryan, and Jill decide to form a limited partnership for the purpose of owning and operating a liquor store. They are all concerned about their personal liability, so they decide that they will all be limited part- ners. Would this be possible? Why or why not? What if Jill agreed to be both a general partner and a limited partner?

Question 3: Why might a limited partnership want to put only the minimum required information in the limited partnership certificate and go into more detail in the limited partnership agreement or other documents?

Question 4: What is one advantage the limited partnership has over the general partnership with regard to raising capital for the business? Who may initiate a derivative action?

Question 5: Suppose that Katherine, Brianna, and Paige have formed a limited partnership to operate a video arcade. Katherine is the general part- ner. She has contributed $2,000 and her time to get the operation running. Brianna and Paige, the limited partners, have each con- tributed $3,000. After one year of operation, the arcade has debts of $10,000 and assets of $20,000, but the three partners decide to discontinue their business and the limited partnership. Brianna and Paige want their investment returned to them. Who should Katherine, who is winding up the business, pay first, Brianna and Paige, or the creditors? How much will Brianna and Paige receive? How about Katherine?

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Business Law and Ethics: Discuss the advantage of the limited partnership
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