Should partners of a business be held personally liable fo
Question and Solution
Should partners of a business be held personally liable for the debts of the business, or should their business activities and debts be kept separate from their personal activities? John and Jeff formed a partnership and started selling cookies based on a secret recipe they created. After one year of strong sales, Jeff left the company with $30,000 cash and was never heard of again. Now, the creditors are requesting payment from John to satisfy a loan Jeff signed. If John can’t make the payments from what is left in the business, who will the bank look to for payment?