Exam 38: Operation of Partnerships and Related Forms

Gillie,Taft,and Dall are partners in 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?

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

A partner is under no duty to maintain the secrets of the business.

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?

_____ occur(s)when partners accept an act of a partner who had no actual or apparent authority to do the act when it was done.

Donna is a partner of Don-Tel Lawn Care,a partnership in the business of providing lawn care services.While mowing a lawn using a partnership mower,Donna negligently runs over a piece of metal,sending pieces of metal flying through the air.One piece hits the client's patio door and shatters the glass.Is Donna liable to the client? Are Donna's partners liable to the client?

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

Under which of the following circumstances will Rita be held liable for the crime of her partner?

Which of the following is true about implied authority?

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