CHBO FINALS Questions and Answers

Closely Held Organization are businesses that are privately held by a "small group" of individuals. Ans- A. What is a closely held business organization? a. Contract obligations: Partners are jointly liable for all partnership debts and obligations. b. Tort obligations: Partners will be jointly and severally liable for these obligations Ans- Limited Liability: GP a. A limited partner is not liable for the obligations of partnerships UNLESS i. The limited partner is a general partner OR ii. The limited partner participates in the control of the business Ans- Limited Liability: LP a. A partner is not personally liable, directly or indirectly, for i. Debts, obligations, or liabilities of LLP whether arising in tort, contract, or otherwise or ii. Acts or omissions of any other partner a. LLP is liable out of partnership assets for partnership debts, obligations and liabilities i. Partner is not a proper party UNLESS the partner is personally liable because of the partner's own acts or omissions. ii. Laws of Indiana or other jurisdiction can not impose liability on a partner. Ans- Limited Liability; LLP a. A member, manager, agent or employee of a limited liability company is not personally liable for the debts, obligations, or liabilities of LLC, whether arising in contract, tor or otherwise or for the acts or omissions of any other member, manager, agent or employee of the LLC. i. A member, manager, agent or employee of LLC may be personally liable for the person's own acts or omissions. Ans- Limited Liability: LL