Jamie and Maria invested all of their savings in a small pizzeria they opened outside the University of Western Kentucky. They operated the business as a general partnership. After 11 months they business went broke and Jamie and Maria were left with outstanding bills of $37,500, which is more than their investment in the company. Jamie and Maria can:

Question

01-10-2019
Business

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Jamie and Maria invested all of their savings in a small pizzeria they opened outside the University of Western Kentucky. They operated the business as a general partnership. After 11 months they business went broke and Jamie and Maria were left with outstanding bills of $37,500, which is more than their investment in the company. Jamie and Maria can:

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Nyctalus Nyctalus · Answer 1 · 2019-10-03T12:55:01+02:00

Answer: Sell their personal assets

Explanation: In the given case, James and Maria were the owners of a firm which has a partnership structure and not the company structure. As per the law, the owners and the firm in a partnership structure would not be considered as two separate legal entities.

In case of any default or liquidation , the personal assets of the owners of the firm could be taken into consideration for repayments of debt.

Hence Maria and Jamie can sell their assets to repay $37,500.