Asked by Ameer Salem on May 05, 2024
Verified
Kendra and Amelia operate an art gallery, owned as a partnership. Kendra disappeared. A few days later, Amelia learned that Kendra embezzled $75,000 of government grant money through the company. Is Amelia responsible for the $75,000?
A) No, because the embezzlement was done by Kendra.
B) Yes, but only if Amelia was aware of the embezzlement.
C) Yes, because Amelia and Kendra are partners.
D) No, because partners are not responsible for the wrongful acts of other partners.
E) Yes, but only to the extent of Amelia's investment into the partnership.
Embezzlement
A wrongful conversion of another’s funds or property by one who is lawfully in possession of those funds or that property.
Government Grant
Financial assistance given by the government to individuals, organizations, or companies for specific projects or purposes, not requiring repayment.
Partnership
An official business arrangement where several individuals jointly manage the business and divide the profits among themselves.
- Identify the responsibilities and liabilities of partners in a partnership.
Verified Answer
Learning Objectives
- Identify the responsibilities and liabilities of partners in a partnership.
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