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Chris and Denis are lawyers working under the name King & Associates. Although they have gone into business together, they work independently on files, they do not review each others work or advice, nor is there any obligation or duty upon them to do so under the applicable laws and regulations governing their legal practice. They do manage the general affairs of the business together and all major business decisions require the input of both Chris and Denis. Denis has practically no assets other than his interest in King & Associates. Chris on the other hand is independently wealthy with other assets and sources of income. One of Deniss legal opinions results in a significant loss for one of their clients. Once this was discovered, the client, ABC Company had to pay an additional $150,000 to settle the claim. ABC Company sued and was successful in obtaining a judgment against Denis and King & Associates for professional negligence. At the time that ABC Company enforced its judgment, King & Associates had assets totalling $35,000. Answer all questions below.

a) What are the implications for ABC Company receiving compensation if King & Associates is a partnership. Explain and provide your analysis

b) If King & Associates was set up as a Limited Partnership with Denis being the General Partner and Chris the Limited Partner, would the result in question (a) above be the same. Explain and provide your analysis

c) If King & Associates was set up as a Limited Liability Partnership (LLP) would the result in question (a) above be the same. Explain. Please presume this is the type of profession that is allowed to register as an LLP. Explain and provide your analysis

d) What are the implications for ABC Company receiving compensation if King & Associates is a corporation. Explain and provide your analysis.

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