Fred and Carole were trying to create a list of the pros and cons of sole proprietorship, partnership, and corporation to determine the best structure for carrying on business. Which of the following is true with regard to being a general partner?
◦ A partner is liable for only the amount that he or she invested in the partnership firm.
◦ Retiring from a partnership by giving notice to the partners frees a partner from the liabilities he or she faced while being a partner of the firm.
◦ Every general partner faces limited liability for the debts of the partnership.
◦ Each partner is an agent for every other partner and for the firm itself, so a partner may be liable for the contracts made by an incompetent partner.
◦ A partner is liable to pay from his or her personal assets only when the partner has committed a criminal act.
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