Exam 27: All Forms of Partnerships

The extent of implied authority is generally broader for agents than for partners.

On a partner's dissociation,his or her right to participate in the management and conduct of the business terminates.

Lucy is a limited partner in Metro Contractors,a limited partnership,which cannot pay its debts.Lucy is personally liable for the debts

Any limit on a partner's capacity to act on the partnership's behalf does not affect a third party who does not know about it.

Cody is a partner in Delta Accounting Service.Cody can inspect

Jim and Kyle are partners in J&K Sales,which exports technical equipment under a three-year partnership agreement.The U.S.government declares that the equipment can no longer be exported.J&K

Tundi is a partner in YooHoo! Amusement,a new partnership.A YooHoo! debt comes due.Tundi is

Denise and Elke do business as Final Curtain Decorators.In most states,for purposes of holding title to property,this partnership would be treated as

A partner may use and possess partnership property for any purpose.

Rona and Stiv do business as Treasure Island Traders.In acting on the firm's behalf in a deal with Unlimited Potential,Inc.,Rona makes an honest error in overestimating the profit.To her firm,Rona is

The death of a limited partner dissolves a limited partnership.

Pat and Quint sign a five-year partnership agreement to do business as "Pat's Landscaping Service." At the end of the fifth year,they decide to continue without specifying a new term.This partnership is terminable

Grady and Hedy do business as Island Tours.For federal income tax purposes,Island Tours would be treated as

A general partner is personally liable for partnership debts if its assets are insufficient to pay its creditors.

Fact Pattern 27-2 (Questions 18-20 apply) Brad, Carlos, and Dora are general partners in Eastside Physicians, a medical clinic. -Refer to Fact Pattern 27-2.Brad's dissociation from the firm results in

Sabin and Tyler agree while talking on the phone to form a partnership.Their partnership agreement is legally binding

In a family limited liability partnership,only persons related to each other may be partners.

On a partner's dissociation,his or her interest in the partnership must be purchased.

Jack and Kyra are partners in Law Firm,LLP,a limited liability partnership.Jack supervises Kyra,who negligently fails to appear in court on behalf of Milo,a client.Liability to Milo rests with

An association cannot be a partnership without an express agreement.