Fred and Carole Were Trying to Create a List of the Pros

Multiple Choice

Fred and Carole were trying to create a list of the pros and cons of sole proprietorship,partnership,and corporation to determine the best structure for carrying on business.Which of the following is true with regard to being a general partner?

A) Each partner is an agent for every other partner and for the firm itself,so a partner may be liable for the contracts made by an incompetent partner.
B) Every general partner faces limited liability for the debts of the partnership.
C) A partner is liable for only the amount that he or she invested in the partnership firm.
D) Retiring from a partnership by giving notice to the partners frees a partner from the liabilities he or she faced while being a partner of the firm.
E) A partner is liable to pay from his or her personal assets only when the partner has committed a criminal act.