Exam 37: A: Partnerships and Limited Liability Partnerships

Fact Pattern 37-1B Brad,Carlos,and Dora are general partners in Eastside Physicians,a medical clinic.Their agreement states it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners. -Refer to Fact Pattern 37-1B.Carlos's assignment of his interest in Eastside to General Credit Corporation results in

Dill and Edy form a partnership.Edy's capital contribution is $10,000,and Dill's is $15,000.The partnership agreement provides that profits are to be shared,with 40 percent for Edy and 60 percent for Dill.Later,Edy makes a $10,000 loan to the partnership when it needs working capital.When the partnership is dissolved,its assets are $50,000,and its debts are $8,000.How should the assets be distributed?

Cody is a partner in Derivative Investment Service (DIS).Cody can inspect

A partner is entitled to make secret profits or put self-interest before his or her duty to the interest of the partnership.

On a partner's dissociation,his or her duty of care to the partnership ends with respect to events that occurred before the dissociation.

Trina and Uri do business as Value Gems.In acting on the firm's behalf in a deal with World Diamond Exchange,Trina recklessly exceeds what Value Gems can afford to pay,causing damage to the firm.Trina is

In a general partnership,the acts of one partner in the ordinary course of business subjects the other partners to personal liability.

Parker and Oscar sign a partnership agreement to do business as "Parker's Plumbing" without specifying a duration.This partnership is terminable

In a limited partnership,a general partner's dissociation from the firm may lead to dissolution.

A partner owes to the partnership and the other partners a duty of care.

Fact Pattern 37-1B Brad,Carlos,and Dora are general partners in Eastside Physicians,a medical clinic.Their agreement states it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners. -Refer to Fact Pattern 37-1B.Brad,Carlos,and Dora decide to admit Faisal as a new partner in Eastside Physicians.Faisal's liability for partnership debts incurred before his admission is

Property acquired by the partnership is the property of the partners individually.

Ben,who runs a livestock breeding business,owes the Circle C Ranch $40,000.Ben agrees to pay the Circle C a percentage of his profits each month until the debt is paid.Because of this agreement,the Circle C is

In a limited partnership,a general partner has full responsibility for the partnership and for all its debts.

A limited liability partnership may exempt its partners from personal liability for any partnership obligation.

Joint ownership of property does not in and of itself creates a partnership.

If a partnership's liabilities are greater than its assets,the partners bear the losses.

In a limited liability limited partnership,the liability of a general part?ner is the same as the liability of a limited partner.

Hollister and Gladys do business as partners in Frothy Confections.For federal income tax purposes,Frothy Confections would be treated as

Tundi is a partner in YooHoo! Amusement,a new partnership.A YooHoo! debt comes due.Tundi is