Exam 35: All Forms of Partnerships

One of the essential elements of a partnership is an equal right to be involved in the management of the business.

In most states, in a dispute on a partnership matter, a third party cannot sue an individual partner but must file an action against the entire firm.

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

A partner can put his or her self-interest before the interest of the partnership without violating any fiduciary duty owed to the firm.

Deb and Eve are partners in Foundations, a construction outfit. Deb manages the business. For this service, unless the partnership agreement states otherwise, she is entitled to pay in proportion to her

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

A court can order the dissolution of a partnership if the business can only be operated at a loss.

In a limited partnership, a general partner assumes no liability for partnership debts beyond the amount of capital contributed.

Shih was the manager of Thai Bistro, a restaurant specializing in Southeast Asian foods. Shih opened a bank account in Thai Bistro's name, signing the account signature card as "owner." Umeko, who was often at Thai Bistro and had free access to its office, told others that she was "an owner" and "a partner." She also opened a bank account in Thai Bistro's name, and signed the account signature card as "owner." Shih told Vijay, the owner of Wong Noodles Inc., that Umeko was a member of a partnership that owned Thai Bistro. On this basis, Wong Noodles delivered its goods to Thai Bistro on credit. In fact, Thai Bistro was owned by a corporation. When the unpaid account totaled more than $10,000, Wong Noodles filed a suit against Umeko to collect. On what basis might Umeko be liable for the debt?

Blake is one of three partners in Commercial Custodial. With respect to Blake's interest in the firm, when she dies, her heirs are most likely entitled to

Amber owns and operates Bistro Café in space leased in a building owned by Ciera. The lease requires a base rent of $1,500, plus 10 percent of Bistro's profits, each month. The term is two years. Amber and Ciera are

Rosa is a partner in Sugar & Spice, a partnership consisting of the owners of a bakery. Sugar & Spice incurs debt for new ovens. With respect to this debt, Rosa is

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

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

Dain is a limited partner in Eco Baits, a pest control service organized as a limited partnership, which cannot pay its debts. Dain is liable for the debts

A partner who withdraws from a partnership for a term before its expiration date can be held liable for any resulting losses.

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

Among three partners, unless they agree otherwise, unanimous consent is required to manage the business of the partnership.

A partner always has the power to dissociate from the partnership.

A partner always has the right to dissociate from the partnership.