Exam 30: Formation and Internal Relations of General Partnerships

Which of the following would lack the capacity to become a partner?

Andre invested $100,000 in a partnership with Erik and Louis. Andre'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 $100,000 he invested. Andre is:

Compare "partnership property" with a "partner's interest." Consider such factors as the definition, the possession, the assignability, how attachment occurs, and the inheritability of each.

A person who receives a share of profits of a business is presumed to be a partner.

A partnership agreement should include all but which one of the following?

Assignment of a partner's interest will cause dissolution.

Sue, Barb, and Carlotta agree to put in $1,000 each to set up a shelter for lost animals. They each work two days a week. Donations fund the day-to-day operations. Do they have a partnership?

Anita, in violation of a specific agreement not to extend credit over $1,000 without the other partners' approval, extends credit of $2,000 to a friend. Anita will be held personally liable to the partners for any unpaid debt since she violated the duty of obedience.

Anita is hired to manage an unincorporated dress boutique owned by Betty. The two agree that Anita will receive one-third of the net profits, which amount is to be paid to her on a monthly basis. Is Anita a partner? If the boutique has a loss instead of a profit, would Anita have to share the loss? Explain.

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

Marilyn, George, and Christine pool their money to buy land to operate a vegetable farm from which they plan to sell the produce and share the profits or losses. Are they partners?

Under the RUPA, a partner is a co-owner of partnership property.

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.

To be partnership property, title to real estate bought with partnership assets and used by the partnership may be put in the name of:

Under the UPA, a partner's ownership interest in any specific item of partnership property is that of a:

A partner can withdraw his partnership capital at any time.

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

In the case of In Re KeyTronics , the court held that:

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:

Arthur, Betty, and Clara each inherit an undivided one-third interest in an apartment complex. Instead of selling it, they decide to continue to operate it for the next few years as a sideline to their other occupations just to see if they can earn some extra money. What are they?