Exam 19: Partnership Operation and Termination

A person working for a partnership firm who is not a partner is an associate and usually gets only a salary.

According to the Uniform Partnership Act,creditors of the old partnership do remain as creditors of the new partnership.

The Revised Uniform Partnership Act RUPA),generally,requires the judgment creditor to exhaust the partnership's assets before going after the separate assets of a partner.

The partnership firm is not liable,if a single partner disposes of the firm's goodwill.

As per the Revised Uniform Partnership Act RUPA),a partnership agreement may eliminate the duty of loyalty so as long as that is not manifestly unreasonable.

If no provision relating to the distribution of profits and losses is stated in the partnership agreement,then under RUPA Section 401b),"each partner is entitled to an equal share of the partnership profits and is chargeable with a share of the partnership losses in proportion to the partner's share of profits."

In the case of a partnership,_____ refers to finishing the business at hand,settling accounts,and terminating the firm.

The Revised Uniform Partnership Act RUPA)uses the term _____ in lieu of the Uniform Partnership Act UPA)term "dissolution."

Under both Uniform Partnership Act UPA)and Revised Uniform Partnership Act RUPA),contract liability of the partners is joint and several.

The _____ states that a business entity does not itself owe taxes on income; it only acts as a pass-through for its members to receive income.

Under Revised Uniform Partnership Act RUPA),dissolution happens when RUPA requires the partnership to wind up and terminate.

_____ is the highest duty of good faith and trust,imposed on partners as to each other and the firm.

Francis,Ricky,and Andrew had opened a bakery in partnership.During the course of their partnership,Ricky had taken a loan of $25,000 from Ryan for personal purposes which he defaulted.Ryan could obtain an)_____ from the court to secure his loan,directing the partnership to pay Ryan the distribution that Ricky would normally receive.

As per the Section 401d)of the Revised Uniform Partnership Act RUPA),a partner is entitled for remuneration for all the services performed by him for the partnership.

Timothy,Reuben,and John,three brothers,work in a partnership firm that specializes in organizing events for people.John's friend Sam visited their place of business and made some suggestions to John for the next event that he was handling.Timothy and Reuben were however,out on a business trip when Sam visited their place.John out of gratuity got Sam a gift out of the business account and asked him to join the partnership.This,at present,could not be possible because of the doctrine of _____.

Ross,Molly,and Dave had opened a partnership firm.Dave mortgaged his interest in the partnership in return for a $10,000 loan from the bank.Under this circumstance,which of the following will hold true as per the Revised Uniform Partnership Act RUPA)?

Which of the following duties of the partners,that they owe each other,relates to the duty to act within the bounds of the authority or trust that has been extended?

Ralph,a partner,doing partnership along with Gilbert and Vicky,during the course of the partnership,pays a sum of $4,000 to one of the suppliers out of his personal account.The partnership firm will have to pay back this amount to Ralph as per the partner's right to _____.

Specific property interest of a tenant in partnership vests in the surviving partners,not in the heirs.

The freedom to select new partners is absolute.