Exam 41: Partnerships

Robertson and Enrickson prepared an agreement to enter into a partnership. Both of the partners realized that outside capital was needed for the firm to begin operations; however, they also realized that their individual and combined credit ratings would not attract sufficient funds. In order to improve the new partnership's ability to attract investment capital, and with the approval of Enrickson, Robertson added his friend Thompson's name to the partnership agreement. Thompson, a well-known personality from a family of means, was not asked to be a partner and knew nothing of Robertson's and Enrickson's actions. Upon seeing Thompson's name on the partnership agreement, a local bank readily agreed to advance Robertson and Enrickson the total sum required to begin operations. The partnership has now failed, and the bank would like to hold Thompson, Robertson and Enrickson liable for the amount of the loan. Will the bank recover from Thompson, Robertson and Enrickson?

The habitual drunkenness of a partner is a sufficient cause for judicial dissolution of a partnership.

A partner requires a majority vote to do those acts that are customary for a member of a partnership conducting the particular business of that partnership.

Dissolution of a partnership:

Under the UPA, partners hold title to firm property by tenancy in partnership.

When a partnership is dissolved by a partner's bankruptcy, notice:

When a partner disassociates with a partnership, which of the following is true?

In determining the rights of partner Dewey in the firm of Dewey, Cheatham, and Howe, the most important reference point is: ______.

A partner admitted as a partner into an existing partnership has unlimited liability for all obligations of the partnership arising before such admission.

A partner is considered an employee of the partnership when doing work that would ordinarily be done by an employee.

The rights of partners are determined by the partnership agreement, which must be written to comply with the statute of frauds

In determining whether a partnership exists, which of the following factors is not evidence of a partnership?

The sharing of gross returns shows no significant evidence of a partnership.

Which of the following will not result in dissolution of the partnership by court decree?