Question

Rachel and Cindy started a retail businesss called Zebra Toy Company. The business is operated as a partnership. Under partnership law: a. Rachel is personally liable for any business contracts entered into by Cyndi. b. Rachel is personally liable for any business debts, regardless of whether she or Cyndi created the obligation.c. Cyndi is personally liable for any negligent act committed by Rachel in the scope of the business activity. d. All of the above.

Answer 1

(D). All of the above

Step-by-step explanation:

According to partnership law, the members or business partners in a partnership are personally liable for the actions of other partners, which may be contracts entered into, debts incurred, or obligations made.

Therefore a partner will be held accountable for actions committed by other partners when carrying out business related activities or making business decisions.

Therefore, Rachel and Cindy who are partners in Zebra Toy Company, are both responsible for decisions made by any of them.