Question

Alex and bailey opened a dance studio together as general partners. they each invested $10,000 of their personal savings. after one year in business, they decided to close the doors. their partnership agreement said they would divide profits and losses 50/50. they have more debt than assets. alex and bailey will each ________.

Answer 1

Since Alex and Bailey are partners and they will be shutting down the partnership. the debts should be settled by both. they will have to sacrifice their personal assets in doing so