Exam 37: B: Partnerships and Limited Liability Partnerships

In a general partnership,all partners have equal rights in managing the partnership.

In a general partnership,the partners are personally liable for the debts of the partnership.

A partner always has the power and the right to dissociate from the partnership.

Guy and Hanna do business as G-H Associates.If G-H is a partnership,it is governed by the Uniform Partnership Act

Clu,Dolf,and Elton do business as Fertile Valley Farm.Clu's relationship to the firm ends,but it continues to do business.This is

Any event that makes its unlawful for a partnership to continue its business will result in dissolution.

A sharing of profits from the ownership of property creates a presumption that a partnership exists.

Jack and Kyra are partners in Law Firm,LLP,a limited liability partnership.Jack supervises Kyra,who negligently fails to appear in court on behalf of Milo,a client.Liability to Milo rests with

In a limited liability limited partnership,the liability of a general partner is limited to the amount of capital he or she has invested in the partnership.

A limited liability partnership allows its partners to avoid personal liability for the malpractice of other partners.

On a partner's dissociation,his or her duty of loyalty to the partnership ends.

Corbin,a partner in Doctors Medical Clinic,applies for a loan with Evermore Bank allegedly on Doctors' behalf but without the authorization of the other partners.Evermore knows that Corbin is not authorized to take out the loan.Corbin defaults on the loan.Liability for its unpaid amount is imposed on

The Uniform Partnership Act governs the operation of partnerships.

Fact Pattern 37-2A Luann and Mace are partners in Networx,a computer peripherals firm. -Refer to Fact Pattern 37-2A.Luann signs a contract with Oleo Chips,a retail component supplier,apparently on Networx's behalf.The contract is binding on

Some states have passed laws prohibiting the withdrawal of limited partners from a limited partnership.

Megan and Nicole do business as One World Realty.In acting on the firm's behalf in a deal with Property Acquisition Company,Megan fails to account for the profit.To her firm,Megan is

Venture Capital,LP,is a limited partnership.Its limited partners include more than 150 sophisticated investors and investment professionals.A Venture limited partner loses his or her limited liability if he or she

In a limited partnership,with the exception of the right to participate in management,limited partners have essentially the same rights as general partners.

Vasili is considering forms of business organization for Vasili's Designs,an ar?chitectural firm.An advantage of a limited liability partnership is that partners may be able to avoid personal liability for

Lucy is a limited partner in Metro Contractors,a limited partnership,which cannot pay its debts.Lucy is personally liable for the debts