Exam 27: All Forms of Partnerships

In a limited liability partnership,a partner can be exempt from personal liability for partnership obligations.

Kelly,Lars,and Mona agree to be partners in Neighborhood Delivery Service (NDS),splitting the profits equally.Kelly contributes 67 percent of the capital.When NDS is dissolved,its liabilities are greater than its assets.The losses are paid by

Guy and Hanna do business as G-H Associates.If G-H is a partnership,it is governed by the Uniform Partnership Act

A limited liability partnership can be formed in virtually any state.

In winding up a general partnership,partners receive distributions of profits before non-partner creditors are paid.

Ben,who runs a livestock breeding business,owes the Circle C Ranch $40,000.Ben agrees to pay the Circle C a percentage of his profits each month until the debt is paid.Because of this agreement,the Circle C is

Dunn and Etta are limited partners in Fancee Fashion Stores,a limited partnership.In terms of the firm's books,Dunn and Etta are entitled to

The maximum amount of money at risk by a limited partner is the amount of his or her investment in the limited partnership.

Sally and Tom decide to go into business,selling discounted merchandise through their Web site "e-Buy." They sign a partnership agreement that requires Sally to contribute $12,000 and Tom to contribute $8,000 in capital to start the firm.The agreement also states that only Sally will have the authority to bind the partnership in deals with third parties,but the agreement says nothing about the management of the firm or a division of profits.Without Sally's knowledge,Tom tells United Computer Products,Inc.,that he represents the firm and signs a contract with United to buy hard drives for resale on e-Buy.In the first year,e-Buy makes a profit of $50,000.What are the partners' rights with respect to the management of the firm? Is the partnership bound to the contract with United? Do the partners split the first year's profits? If so,how much is each entitled to?

Energy Unlimited,LP,is a limited partnership to which its partners,including Fink,have contributed capital.Energy's creditors include Graves Engineering,Inc.On Energy's dissolution,its assets will be distributed to pay

The Uniform Partnership Act has done much to reduce controversies in the law relating to partnerships.

A sharing of profits from the sale of the goodwill of a business creates a presumption that a partnership exists.

Mabel and Nicol do business as One World Realty.In acting on the firm's behalf in a deal with Property Acquisition Company,Mabel fails to account for the profit.To her firm,Mabel is

Dave and Eiger are partners in First-Place Athletic Supplies,which sells sports equipment.Dave manages the business.Unless the partnership agreement states otherwise,Dave is

Connie,Drew,and Ellen are the general partners of Foreign Auto Repair,a limited partnership.Connie dies.The partnership can

A limited partner who gives a general partner advice on matters relating to the management of the partnership cannot be liable as a general partner.

Noah and Orin do business as Personnel Partners.In most states,for purposes of suing and being sued,Personnel Partners would be treated as

Fact Pattern 27-1 Hal, Ira, and Jill are partners in Kappa Accessories, a computer peripherals firm. -Refer to Fact Pattern 27-1.Ira dissociates from Kappa.Jill signs a contract with Micro Drives,a wholesale component supplier,allegedly on Kappa's behalf.Micro knows of Ira's dissociation.The contract is binding on

Jay is considering forms of business organization for Jay's Designs,an architectural firm.An advantage of a limited liability partnership is that partners can avoid personal liability for

Joint ownership of property in and of itself creates a partnership.