Exam 38: Operation of Partnerships and Related Forms

A partner uses her own truck to pick up some partnership supplies,which she pays for with her personal check.This partner has the right to be ________ for payments made from her personal funds.

Hannah is a managing partner of Andrusian Worldwide LLP,an accounting and consulting partnership.Acting within her implied authority,Hannah makes a contract for Andrusian to perform an audit for National Motors Company.The audit fee is $325,000.The performance of the audit takes more hours than Hannah expected,because Hannah has failed to determine the number of locations in which National Motors does business prior to setting the audit fee.As a result,Andrusian loses $50,000 on the audit.Has Hannah breached a fiduciary duty?

A partner who has the authority to borrow money also has authority to:

A single partner's knowledge of material information relating to partnership affairs is:

Under the Revised Uniform Partnership Act partners owe each other loyalty.

Mark and Bonnie are partners.Mark contributed $30,000 of capital to the partnership and Bonnie contributed $15,000.Mark does 70 percent of the partnership's work,while Bonnie does 30 percent.They agree that Mark will assume 60 percent of partnership losses and Bonnie 40 percent.They have not decided how to share profits.The partnership earns a profit of $90,000.What is Bonnie's share of the profits?

A trading partnership:

Don is a partner of the firm Shaw Associates,which offers recruitment services.Don entered into a contract with Bradman & Sons to sell the land on which the partnership business is situated for $85,000.Is this contract enforceable?

In all partnerships,profits are shared according to the amount of capital contributed by each of the partners.

Which of the following is true about partnership agreements?

When a partner competes against his partnership without consent,what is the remedy for such a breach?

When partners disagree concerning an action to be taken in the ordinary course of business,the disagreement will be resolved only if all the partners agree.

How many partners must agree to modify a partnership agreement?

Frazier and Roz are partners.Frazier contributes $30,000 to the partnership,and Roz contributes $10,000.They agree that Frazier will assume 70 percent of partnership losses and that Roz will assume 30 percent.They make no agreement about how to share profits.The partnership has a profit of $60,000 in its first year.How much of the profits is Frazier entitled to receive?

A partner's express and implied authority constitutes his or her apparent authority.

Tim is a partner at Starland Properties and gives one of Starland's customer lists to Sun Realty,the firm's leading competitor.In this situation,Tim has violated:

Gary and Felix are partners of a general partnership.Gary does two-thirds of the partnership work,while Felix does one-third of the work.Last year the partnership earned $300,000 in profits.Under the RUPA,how much of the $300,000 is Felix entitled to receive?

Lara is a partner at Matador Services,a management consulting firm.She makes an agreement with Regal InfoTech whereby Matador will provide management consulting services for $75,000 to Regal,on the condition that Regal pays her $5,000 personally.Which of the following is true of this situation?

Which of the following statements about LLPs is false?

A partnership does not have the authority to ratify the unauthorized act of partners.