Exam 38: Operation of Partnerships and Related Forms

A partnership adds Ted as a partner to manage their clients' accounts,even after discovering he is a convict on parole for theft.After working for one week,Ted quits and cannot be located.The partners discover that Ted stole $5,000 of their clients' money.Which of the following is true regarding the partners' liability?

The ________ requires partners to undertake their share of responsibility for running the day-to-day operations of the partnership business.

In the case in the text,McMillian v.McMillian,what did the intermediate court hold?

The standards and principles of agency law's respondeat superior are applied in determining the liability of the partnership and of the other partners for the torts of a partner and other partnership employees.

Which of the following is not allowed in a partnership agreement?

In a partnership,partners may not compete against their own partnership unless:

What document gives authority to a managing partner to run the business?

Gillie,Taft,and Dall are partners of an architectural firm.The partnership agreement is silent about the payment of salaries and the division of profits and losses.Gillie works full-time in the firm,and Taft and Dall each work half-time.Taft invested $120,000 in the firm,and Gillie and Dall invested $60,000 each.Dall is responsible for bringing in 50 percent of the business,and Gillie and Taft 25 percent each.How should profits of $120,000 for the year be divided?

According to the RUPA,a partner:

Modern criminal codes define a partnership as a(n)________ that may commit a crime when a partner,acting within the scope of his authority,engages in a criminal act.

Under what condition may a partner compete against the partnership business?

In a partnership,each partner has limited personal liability to partnership creditors.

LLP partners are personally liable for contractual obligations and may be sued.

In NBN Broadcasting,Inc.v.Sheridan Broadcasting Networks,Inc.the court held that:

Partnership agreements often include provisions that excuse partners from liability if they act in good faith and with the honest belief that their actions are in the best interests of the partnership.Such a provision is designed to:

Together,express and implied authority constitute ________.

Kate is a partner of a limited liability partnership (LLP)that provides accounting services.Acting within her authority,Allie,who is one of Kate's subordinates,negligently provides accounting services to a client.The client sues the LLP and its partners.Which of the following is incorrect?

The apparent authority of a partner to bind the partnership in dealing with third parties:

In a partnership,partners may give everyone notice of limitation on a partner's authority by filing a(n)________ with the secretary of state.

When a partnership and the other partners are held liable for a partner's tort,they may recover the amount of their ________ liability from the wrongdoing partner,but only if the partner fails to comply with ________.