Exam 31: All Forms of Partnership

In many instances, agency law governs the relationships among partners.

In some states, limited partners cannot withdraw from a limited partnership.

Fresco and Garcia form a partnership-HVAC Pros. Garcia's capital contribution is $10,000, and Fresco's is $15,000. The partnership agreement provides that profits are to be shared, with 40 percent for Garcia and 60 percent for Fresco. Later, Garcia makes a $10,000 loan to the partnership when it needs working capital. When the partnership is dissolved, its assets are $50,000, and its debts are $8,000. How should the assets be distributed?

At the option of the partners, a partnership can be a pass-through entity or a taxpaying entity.

Olin is a partner in Precision Plumbing. When the partners decide to dissolve the firm, Olin collects and distributes the assets. This results in

A limited partner can force the dissolution of a limited partnership even if the other partners want to continue the business.

Sol and Thom agree to form a partnership to sell real property. To be enforceable under the Statute of Frauds, their agreement must be

A partner can bring an action for an accounting during the term of the partnership and the firm's property can be sold to satisfy the partner's personal debts.

Every act of a partner concerning partnership business binds the firm.

The articles of partnership can include any terms that the partners wish, including terms that might be illegal or against public policy in other situations.

Brent and Char are limited partners in Dental Center, a limited partnership. In terms of the firm's books and information regarding partnership business, Brent and Char are entitled to

Obie operates Pizza Place. Obie hires Qua to take and fill customers' orders at an hourly wage of $15.00, plus tips. Obie and Qua are

Only a managing partner has the right to full and complete information concerning the conduct of all aspects of partnership business.

Dissociation occurs when a partner ceases to be associated in the carrying on of the partnership business.

A single person carrying on a business for profit, with control over its operation, can form a partnership.

When there is no formal, written partnership agreement, an agreement to form a partnership is unenforceable.

Bhat and Cho do business as Data Security, a partnership. In most states, for the purposes of collecting judgments and having accounting performed, this firm would be treated as

Nell is considering forms of business organization for Optic Center, a medical eye clinic. An advantage of a limited liability partnership is that, depending on the applicable state statute, partners can avoid personal liability for

Dissociation terminates some of the rights of the dissociated partner, requires the firm to buy his or her interest, and alters the parties' liability to third parties.

Cal, Dex, and Erin agree to be partners in Fajitas, splitting the profits equally. Cal contributes 65 percent of the capital. When Fajitas is dissolved, its liabilities are greater than its assets. The losses are paid by