Read and respond to Exercises 1-3 in Chapter 20 of the textbook. Yolanda and Zachary decided to restructure their small bookstore as a limited partnership, called “Y to Z’s Books, LP.” Under their new arrangement, Yolanda contributed a new infusion of $300; she was named the general partner. Zachary contributed $300 also, and he was named the limited partner: Yolanda was to manage the store on Monday, Wednesday, and Friday, and Zachary to manage it on Tuesday, Thursday, and Saturday. Y to Z Books, LP failed to pay $800 owing to Vendor. Moreover, within a few weeks, Y to Z’s Books became insolvent. Who is liable for the damages to Vendor?
1. What result would be obtained in Exercise 1 if Yolanda and Zachary had formed a limited liability company?
2. Suppose Yolanda and Zachary had formed a limited liability partnership. What result would be obtained then?
The assignment grade will be based on thoroughness and accuracy.
Proper grammar and sentence structure are expected.
Length: at least 2 double-spaced, 12 pt. font pages, not including title or reference page(s).