The debts due by the partnership's limited partners cannot be collected by the bankruptcy trustee. The partners are not liable to the company, according to the proper filing. (Bebchuk, 2005). However, the bankruptcy office may decide to liquidate all of the partnerships' properties in order to pay off all outstanding debts. (Bebchuk, 2005). The debts owed by the business are equally the burden of each partner. In order to guarantee entire debt recovery, the partners' creditors should be compensated in full. The trustee is also unconstrained in terms of the partners in Heritage Hills' percentage stake. Thus, each partner can be sued independently to the full deficiency or shortfall amount for the organization. The partners will end up paying the entire amount.
Question 7
The Board is not correct. This is because the functionality and legal rights of Johnson & Higgins, which existed in the contract, are transferred to Marsh & McLenna through the acquisition (Marks, 2003). Furthermore, Orleans Parish School Board continued to receive the services, which Johnson & Higgins offered after the acquisition. Hence, there was no breach of contract. Marsh was operating because of the existence of the contract. The company was also proving services in accordance with the terms of contract. Therefore, Marsh should be paid by the school.
Marsh acquired Jonson & Higgins on legal basis. Corporate law allows for the acquisition of business or companies (Marks, 2003). Thus, unless the Board proves that Marsh is not the legal successor of Johnson & Higgins, the school should pay this company for its services.
References
Bebchuk, L. (2005). "The Case for Increasing Shareholder Power," 118 HARV. L. REV. 833
Marks, M. (2003). Charging Back up the Hill: Workplace Recovery after Mergers, Acquisitions,
and Down-sizings.San Francisco: Jossey-Bass.
