elliot and brandwon operate a record label, surf dreams, in riverside county, california. they have not…

elliot and brandwon operate a record label, surf dreams, in riverside county, california. they have not filed any paperwork with the state, but they have been jointly operating the business for ten years. in june 2020, brandwon took out a loan from a bank in the companys name for $250,000. brandwon then disappeared, and the bank came after elliot for repayment. which of the following statements is true? because they did not file any paperwork with the state, elliot is not liable for brandwons debt. only the record label as a business is liable for the debts. neither elliot nor brandwon is personally liable. elliot is personally liable for the debt that brandwon incurred in the companys name. elliot is only liable for the debt if he signed the loan paperwork as a cosigner or guarantor.

elliot and brandwon operate a record label, surf dreams, in riverside county, california. they have not filed any paperwork with the state, but they have been jointly operating the business for ten years. in june 2020, brandwon took out a loan from a bank in the companys name for $250,000. brandwon then disappeared, and the bank came after elliot for repayment. which of the following statements is true? because they did not file any paperwork with the state, elliot is not liable for brandwons debt. only the record label as a business is liable for the debts. neither elliot nor brandwon is personally liable. elliot is personally liable for the debt that brandwon incurred in the companys name. elliot is only liable for the debt if he signed the loan paperwork as a cosigner or guarantor.

Answer

Brief Explanations:

Since Elliot and Brandwon were jointly operating the business without filing formal paperwork, it likely forms a general partnership. In a general partnership, each partner is personally liable for the debts and obligations of the partnership. Brandwon took the loan in the company's name, and as a partner, Elliot is personally liable for this debt.

Answer:

Elliot is personally liable for the debt that Brandwon incurred in the company's name.