Question oneA partnership is a sort of business association without legal personality in which several individuals, defined as general partners, control the company and are equally responsible for the debts incurred; we also have other people defined as limited partners, this type of partners can invest but are not directly involved in the administration and are only responsible in relation to the level of money investments in the company. Unlike a limited liability business or corporation, in a partnership all partners assign equal responsibility for the company's debts and liabilities, as well as its income and losses. The company itself does not lose income tax; however, each associate must provide a report of their share of business relationships on each person's tax return. Approximate tax expenses are also essential for all associates for the year as the business continues. There are two viable types of partnerships: limited partnerships and general partnerships. In this case, we are not sure about the type of partnership. Although, by assumption, we should consider it a general partnership. From examining the information provided in this situation it is clear that the issue lies in the association of people with third parties in carrying out their business. In any form of partnership, the partners have individual liability, as the partners in person are legally responsible for all debts and liabilities of the partnership, including court verdicts. This then implies that if the company itself is unable to pay a creditor, such as a contractor, owner or creditor, the creditor has the power to legally take possession of the personal effects or other assets of any associate. In addition to this, any individual Member may ... by paper ...... act, as trustee, is required to release all or part of the liability if the company: (a) has not, and cannot, discharge the liability or part thereof; and (b) is not entitled to full indemnification in respect of the liability of the out-of-trust assets. This applies even if the trust does not have sufficient assets to compensate the trustee. The person is liable both individually and jointly with the company and anyone else who is liable under this paragraph. This section also states that the amount is equal to the amount of debts that are in the name of the corporate trustee and cannot be satisfied with the trust assets. Following these facts, I conclude that Michael is liable and the creditors may take any action to recover their debts from Michael, provided that the claims are equal to the amount of the debts payable to the corporate trustee.