FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 31: All Forms of Partnership

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

In most states, in a dispute on a partnership matter, a third party cannot sue an individual partner but must file an action against the entire firm.

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Quint and Reba are partners in Sofas Plus, a furniture store. Quint dissociates from the business. This ends Quint's

A) right to participate in the partnership business.
B) right to have his interest in the partnership purchased by the firm.
C) duty of care with respect to events that occurred before dissociation.
D) all of the choices.

E) All of the above
F) None of the above

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

A partner is liable for simple negligence in judgment in conducting partnership business because such an act implies intent to engage in misconduct.

Among three partners, unless they agree otherwise, unanimous consent is required to manage the business of the partnership.

Vern is one of three partners in Waffles Food Truck. Concerning all aspects of the partnership business, Vern is entitled to information

Cathy, Don, and Ethel are partners in Fruit Orchard Farms. Cathy gives notice to quit the firm, which otherwise continues to do business. This is

Jana and Kwan are partners in Lawyers LLP, a limited liability partnership. Jana supervises the firm's associate Milo, who negligently fails to appear in court on behalf of Norm, a client. Liability to Norm rests only with

A court can order the dissolution of a partnership if the business can only be operated at a loss.

Kim and Lyle are partners in K&L Sales, which exports technical equipment. If Congress declares that the equipment can no longer be exported, K&L

When a person who is not a partner holds himself or herself out as a partner, a court may impose liability-and partnership rights-on the alleged partner.

The essential elements of a partnership do not include

The payment of a percentage of profits from the ownership of property to repay a loan does not prove the existence of a partnership.

Dain is a limited partner in Eco Baits, a pest control service organized as a limited partnership, which cannot pay its debts. Dain is liable for the debts

Cornell and Duke are partners in Equity Lending. They decide to admit Fran to the firm as a new partner. Fran's liability for partnership debts incurred before her admission is

A partner can put his or her self-interest before the interest of the partnership without violating any fiduciary duty owed to the firm.

Brad and Carol are partners in Doctors for Children, a medical clinic. Brad's dissociation from the firm results in

Deb and Eve are partners in Foundations, a construction outfit. Deb manages the business. For this service, unless the partnership agreement states otherwise, she is entitled to pay in proportion to her

A partnership agreement must apportion profits and losses in the same ratio as the partners' investment of time and capital in the business.

Dean, a partner in Equipment Sales, applies for a loan with Farmers Bank allegedly on Equipment's behalf but without the authorization of the other partners. The bank knows that Dean is not authorized to take out the loan. Liability in the event of default will be imposed on

Gwen and Hugo do business as Gwen & Hugo Civil Engineers, a partnership. This firm is governed by the Uniform Partnership Act