Exam 36: Partnerships: Nature, formation, and Operation

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A) No,Kenya is incorrect because unless otherwise stated in the articles of partnership,all partners share equally in the management of the partnership.
B) Yes,Kenya is correct only if she can establish that the other partners are guilty of mismanagement in such a significant manner that a breach of fiduciary duty has occurred.
C) No,Kenya is incorrect because unless otherwise stated in the articles of partnership,partners share in management rights in proportion to their rights to profits.
D) Yes,Kenya is correct only if the proportion of work she was doing was inequitable.
E) No,Kenya is incorrect because unless otherwise stated in the articles of partnership,partners share in management rights in proportion to their obligation for losses.

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A) Carmine can satisfy the judgment through Geoffrey's G&J profits by obtaining a charging order.
B) Carmine can satisfy the judgment through Geoffrey's profits,a sale of G&J's assets,or a sale of G&J's inventory.
C) Carmine can satisfy the judgment through Geoffrey's profits or a sale of G&J's inventory,but not through a sale of G&J's assets.
D) Carmine can satisfy the judgment through Geoffrey's profits or a sale of G&J's assets,but not through a sale of G&J's inventory.
E) Carmine cannot recover from G&J.

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A) Synopsis
B) Overview
C) Review
D) Report
E) Accounting

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A) A partner does not have implied authority to sell partnership property without the consent of all other partners.
B) Implied authority permits partners to enter into agreements necessary to carry on partnership business.
C) A partner has the authority to purchase goods necessary to perpetuate the business.
D) Partners generally have less authority than typical agents.
E) The implied authority of partners is usually determined by the nature of the business.

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A) An agreement between a local and a multinational company to equally share in profits and losses.
B) A group of businesses in which each individual business has a stake in the others.
C) A type of industrial district in which an attempt is made to encourage foreign investment.
D) A type of offshore partnership in which the strengths of outside firms is combined with those of firms in developing countries.
E) A partnership with one local and one multinational company in an information and communication technology project.

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A) Yes,because there is a majority vote in favor of the admission of new partners.
B) No,because there is no 4/5 vote in favor of the admission of new partners.
C) Yes,but only if all material facts about the new partners have been disclosed to Igor.
D) No,because there is no unanimous vote in favor of the admission of new partners.
E) Yes,because the two potential partners will bring significant capital into the partnership.

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A) Yes,because there is no evidence of fraud.
B) No,because all partners must participate in the transaction.
C) Yes,but only if Kyle identified himself in writing as an agent of the partnership in the transaction.
D) Yes,because he was acting as an agent of the partnership.
E) No,because he sold the boat for his own personal gain.

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A) A partnership must have a profit-making motive only if the partnership has five or more members.
B) The partners must operate the business for a profit,which is construed to mean that the partners must intend to make some kind of profit from the business.
C) The partners must operate the business for a profit,and the partnership must be dissolved if no profit is made for three consecutive years.
D) There is no requirement that a partnership be formed with a profit-making motive,and all states recognize the status of non-profit partnerships.
E) There is a requirement that a partnership have a profit-making motive only if the partnership has been in existence for over one year.

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B

A) No,individuals serving as partners must have legal capacity to be partners and must be at least 18 years of age.
B) Yes,but the partnership agreement is void.
C) Yes.
D) Yes,but the partnership agreement is voidable.
E) No,individuals serving as partners must be at least 18 years of age.

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A) A court may require a partnership to which a defendant belongs to provide financial information and can restrict the partnership from making loans;but a court cannot restrict the partners from encumbering or transferring their interests.
B) A court may require a partnership to which a defendant belongs to provide financial information and can restrict the partners from encumbering or transferring their interest,but a court cannot restrict the partnership from making loans.
C) A court may require a partnership to which a defendant belongs to provide financial information,and can restrict the partnership from making loans or from encumbering or transferring their interests.
D) A court may require a partnership to which a defendant belongs to provide financial information but cannot restrict the partnership from making loans or from encumbering or transferring their interests.
E) A court may not require a partnership to which a defendant belongs to provide financial information,nor restrict the partnership from making loans or from encumbering or transferring their interests.

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A) Simon's property,because a partnership is not a person.
B) Big City Law Firm,unless Simon reasonably believed that property purchased with that partnership credit card would become his personal property.
C) Simon's property,as long as the price was de minimus.
D) Big City Law Firm.
E) It would depend on the terms of the credit card agreement.

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D

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A) Yes,implied authority permits partners to enter into agreements regardless of the subject matter.
B) Yes,so long as the amount of the agreement is not unreasonable.
C) Yes,implied authority permits partners to enter into agreements necessary to carry on partnership business.
D) Yes,actual authority permits partners to enter into agreements regardless of the subject matter.
E) No,all partners must be signatories to a written agreement.

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A) Individuals only
B) Partnerships,individuals,corporations,and other associations
C) Partnerships and individuals
D) Partnerships,individuals,and corporations
E) Corporations only

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A) As long as one partner has authority to act and the partnership is bound by the act,each partner has unlimited personal liability for the obligation.
B) As long as the partner has authority to act,each partner's act in making agreements with third parties is binding on the partnership.
C) As long as the partner has authority to act,each partner's act in performing business duties is binding on the partnership.
D) Each partner can serve as an agent for the partnership.
E) A partner cannot serve as an agent for other partners.

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E

A) Yes,but only if the other partners can show that she made more income through doing the work on her own than she would have made if she had done the work through the partnership.
B) No,but only because she held two-thirds of the voting rights and could approve the work herself.
C) Yes,she breached her duty of integrity to the other parties.
D) No,she did not breach any duty.
E) Yes,she breached her fiduciary duty to the other partners.

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