Exam 30: Formation and Internal Relations of General Partnerships

The type of business enterprise with the most entities is the sole proprietorship, followed by the corporation; but the type of business enterprise with the greatest total revenue generation per year is the corporation.

"Partnership property" is the sum of the partnership's assets, including all property acquired by a partnership.

Kean and Bubnick are real estate agents who share commissions on joint sales.This sharing of gross returns establishes a partnership unless Kean and Bubnick have a written agreement to the contrary.

No person may become a member of a partnership without the consent of all the partners.

Luke typically spends 50-55 hours per week working in the real estate partnership he co-owns with Spencer.Spencer only spends about 30 hours a week on partnership business.Under the RUPA:

States have authorized the formation of limited liability companies.

Each partner has an interest in the partnership, which includes his share of profits and losses, his right to receive distributions, and his management rights.

The RUPA cannot be modified by agreement of the partners to a partnership.Its provisions must be strictly followed in any partnership agreement.

A partner's transferable interest is subject to the claims of that partner's creditors who may obtain a judicial lien known as a(n) __________ against the partner's transferable interest.

Bert and Philip have decided to form a partnership to operate a lawn care service.Discuss whether they should name the business and, if so, what considerations affect the name they might choose.

Sole proprietors have limited liability for the sole proprietorship's debts.

General partners differ from limited partners only in the amount of input they have in partnership decisions.

A business form devised to avoid the burdens of corporate regulation, particularly the formerly widespread prohibition denying corporations the power to own and deal in real estate, and used primarily for asset securitization ventures is the:

In the case of Thomas v.Lloyd , the court held:

Ruben invested $40,000 in a partnership with Clark and Louis.Ruben's contract with the partnership states he will receive a portion of partnership profits, but he will be liable for partnership's debts only to the extent of the $40,000 he invested.Ruben is:

Landrum voluntarily assigns his transferable interest in a partnership to McClendon.This act does not by itself result in the dissolution of the partnership, nor does it result in McClendon's being entitled to participate in the management of the partnership business.

Which of the following is the most convincing evidence of a partnership arrangement?

Michelle and Margaret agree to form a partnership called "Double M." The partnership contract between Michelle and Margaret must be in writing in order to be enforceable in the courts.

Co-ownership of the means or instrumentality of accomplishing a single business transaction or a limited series of transactions ordinarily results in a:

Mount Pleasant Tires does not have sufficient funds to pay damages for a tort that arose out of the operation of the business.Jess, a business owner, is not personally liable if: