Suppose I'm a limited partner in a partnership company. The total asset is $8000 while the total debt is $6000. And my share in this firm is 30%. Other partners are general partners.
a. What is the value of the equity for this firm?
b. Now the market value of the total asset decreased to $6000. If the firm is going to bankruptcy, how much money will I lose due to this firm? How much money will other partners lose due to this firm?
c. If the firm is considering investing in a project which I'm familiar with, can I participate in the operation of this investment of the firm? Why?
d. If one of these general partners bought a laptop with the firm's cash without telling others, it costs the firm $2000. After that, the board built up a monitoring system. It costs the firm $3000. What is the name of this kind of problem? How much is the cost related to this problem?
