Joan and Ann Started a Small Pie Shop Located Just

Multiple Choice

Joan and Ann started a small pie shop located just inside the side entry of The Diamond Restaurant. All the working capital and equipment was supplied by Joan, but they both worked at the business full time for five months. Neither one took any wages and when they finally liquidated Joan claimed Ann ought to pay half of the remaining indebtedness. Ann, after consulting with her lawyer, claims she won't pay any of the business debts because

A) only investors would participate in the liquidation of assets and the payment of debts.
B) even though a partner, it is implied that Joan would take all business losses.
C) even though a partner, she has no funds and therefore cannot pay.
D) she was an employee, therefore would not be liable.
E) she wasn't a legal partner and therefore is not liable.