Exam 31: Formation and Internal Relations of General Partnerships

Assignment of a partner's interest will cause dissolution.

A corporation may not be a partner in a partnership.

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

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.

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

The form of business association known as partnership is a relatively recent creation, being developed in the United States during the Industrial Revolution.

Under the common law, a partnership was generally considered to be a legal entity rather than an aggregate of individuals.

A charitable organization cannot be formed as a partnership.

Compare sole proprietorships, general partnerships, and limited partnerships with regard to ease of formation, liability of owners, control, taxation, and continuity.

Any natural person having full capacity may enter a partnership.

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 violates the duty of loyalty if the conduct furthers the partner's own interest.

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?

A general partnership is formed without any formality and no documents need be filed with the state.

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

Whether an individual partner or the partnership owns certain property determines who gets it upon dissolution of the partnership and who shares in income from it.

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

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:

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

A limited liability partnership is a limited partnership which falls under special statutes not requiring filings to limit partners' liability.