General Partnership Liability
Jerry and Jenny are general partners in a real estate investment group. Jerry invests $500,000 of his personal funds to acquire properties, while Jenny manages the transactions. As a result of several unprofitable investments made by Jenny, the partnership now owes $800,000 in delinquent mortgage payments. Jerry can be held personally liable for:
AUp to $500,000
BNone of the debt
CUp to half of the debt, or $400,000
DThe full $800,000
EOnly the debt resulting from transactions he personally approved
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