Answer :
Final answer:
The answer to the question is that Bob is indeed responsible for the debt incurred by Ted, making the statement false. In a general partnership, all partners share liability for business debts, regardless of who incurred them. This means creditors can pursue personal assets from both partners if necessary.
Explanation:
Understanding Partnership and Debt Responsibility
In the scenario presented, the statement that Bob is not responsible for the debt incurred by Ted is False.
In a general partnership, all partners, including Bob, are personally liable for the debts and obligations of the business. This means that if Ted ran up [tex]$500,000 in debt under the business's name, Bob would indeed be responsible for that debt as a general partner. General partners share the liability for the business's debts regardless of which partner caused the debts to occur.
For example, if the business cannot pay its debts, creditors can pursue Bob's personal assets to recover money owed. Therefore, both Ted and Bob would be accountable for the $[/tex]500,000 liability.
Learn more about General Partnership Liability here:
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