Answer Happy

3. Abe starts a business in which he makes all the management decisions and takes all actions for the business entity. Bill and Cal invest $5,000 each. Bill and Cal are 'silent partners' and have no input into management decisions nor do they engage in any corporate activities. This business entity is known as a a. limited liability company b. limited partnership C. limited liability corporation d. limited liability limited partnership 4. Son created a limited partnership (LP) and his dad, a limited partner, invested $10,000 start-up capital. The LP breached a contract and a $30,000 judgment was entered against the LP. The LP has spent all start-up investments and has no money. How much is dad, the only limited partner investor in this entity, responsible for paying? a. Dad is personally liable as he is the sole investor. He must come up with an additional $30,000. b. Dad is personally liable for only $15,000, half the judgment. His son is personally liable for the other half, $15,000. C. Only the LP entity is liable for the $30,000. Neither dad nor son is personally liable for the $30,000 judgment against the LP. d. Only the son is personally liable for the $30,000. Since the LP entity is broke, the son must use his personal (family) assets to pay this debt.