Kraft is a limited partner of Johnson Enterprises, a limited
partnership. As provided in the limited partnership agreement,
Kraft decided to leave the partnership and demanded that her
capital contribution of $20,000 be returned. At this time, the
partnership assets were $150,000 and liabilities to all creditors
totaled $140,000. The partnership returned to Kraft her capital
contribution of $20,000.
a. Explain what liability, if any, Kraft has to the creditors of
Johnson Enterprises.
b. If Johnson Enterprises had been formed as a limited liability company, explain what liability, if any, Kraft would have
to the creditors of Johnson Enterprises.