Explain the principle involved in given case

Assignment Help Management Theories

Reference no: EM131387325

Simmons, Hoffman, and Murray were partners doing business under the firm name of Simmons & Co. The firm borrowed money from a bank and gave the bank the firm's note for the loan. In addition, each partner guaranteed the note individually. The firm became insolvent, and a receiver was appointed.

The bank claims that it has a right to file its claim as a firm debt and also that it has a right to participate in the distribution of the assets of the individual partners before partnership creditors receive any payment from such assets.

a. Explain the principle involved in this case.

b. Is the bank correct?

Reference no: EM131387325

Questions Cloud

Should harold succeed : Paula, Fred, and Stephanie agree that Paula and Fred will form and conduct a partnership business and that Stephanie will become a partner in two years.- Should Harold succeed?

Example of a managerial decision that linear programming : Give an example of a managerial decision that linear programming can answer, and then respond to it substantively. Be sure to back up your opinion with facts, citing sources from inside and/or out of class as appropriate.

Would alaskas cash flow be favorably or unfavorably affected : Assessing Economic Exposure Alaska, Inc., plans to create and finance a subsidiary in Mexico. Would Alaska's cash flows be favorably or unfavorably affected if the Mexican peso depreciates over time?

Selected law on health care organizational policies : Select a law that has an impact on the health care industry. Examples of such laws may include access to care, discrimination, health care privacy and security, employment, etc. Write a 1,750- to 2,100-word paper in which you discuss the impact of..

Explain the principle involved in given case : Simmons, Hoffman, and Murray were partners doing business under the firm name of Simmons & Co.- Explain the principle involved in this case.

Reasonable way to bring the vietnam war to end soon : Why did Robert S. McNamara “see no reasonable way to bring the Vietnam war to an end soon”? What was the difference, if any, between ending the war and winning the war? To what extent could McNamara's assessment be said to reflect the success of the ..

Design highway passing lanes : Discuss how vehicle performance characteristic can be used to help design highway passing lanes, and stopping sight distances.

What should be the result with regard to the dye plant : Anthony and Karen were partners doing business as the Petite Garment Company.- What should be the result (a) with regard to the dye plant and (b) with regard to Leroy's home?

Quality function deployment : What is QFD (Quality Function Deployment)? Explain and illustrate with an example how quality function deployment translates customer desires into product/service attributes.

User Account

All Pages