1) Rowdy Roddy Piper and the Macho Man Randy Savage open an antique shop without filing any paperwork with the state. Macho Man Randy Savage’s liability is
A) limited by state statute and varies from state to state
B) limited to the amount of his investment in the business
C) unlimited with respect to all partnerships debts
D) unlimited with repect to debts arising from his own decisions
2) Tootie is a partner in Facts of Life, a general partnership. A Facts of Life debt comes due. Tootie is
A) not liable for the debt
B) only liable up to the amount of her capital contribution
C) personally liable for a portion of the debt equal her percentage of ownership
D) liable for thr full amount of the debt
3) Gargamel is a member of Smurfs LLC. Like other members of limited liability companies, Gargamel’s liability for Smurfs LLC’s debts resembles the liabilities of
A) a participant in a joint venture
B) an owner of a sole proprietorship
C) a partner of a partnership
D) a shareholder of a corporation