Exam 32: All Forms of Partnership

In a limited partnership, a general partner's dissociation from the firm may lead to dissolution.

In a limited partnership, a general partner has full responsibility for the partnership and for all its debts.

For most purposes, the law recognizes a partnership as an independent entity.

A sharing of both profits and losses is the only requirement of a partnership.

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

Will and Jay form Northwest Air Express, a general partnership. The essential elements of this partnership do not include

A partner is entitled to make secret profits or put self-interest before his or her duty to the interest of the partnership.

A partner owes to the partnership and the other partners a duty of loyalty.

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

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

Fact Pattern 32-1 Brad, Carlos, and Dora are general partners in Eastside Physicians, a medical clinic. -Refer to Fact Pattern 32-1. Brad, Carlos, and Dora decide to admit Faisal as a new partner in Eastside Physicians. Faisal's liability for partnership debts incurred before his admission is

Sweet Selections is a general partnership that sells candy, cards and flowers. Sweet Selections has ten partners. Jill and Amy each have a 25 percent interest in the partnership. All the other members have a 10 percent interest. To pass a management decision

A partnership agreement can include almost any terms that the partners wish.

Federal law permits a partnership to be treated as an entity in suits in federal courts.

Doral, Esteban, and Fiona are general partners in Centreville Dentistry, a dental clinic. Their agreement states it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners. Doral's assignment of his interest in the clinic to Hometown Lenders results in

Partnership profits must be shared in the same proportion as the partners' investment of capital in the firm.

Mead, Nero, and Olen do business as Pipe & Plumbing Services. After Mead's relationship to the firm ends, Nero and Olen agree to discontinue the business. This is

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

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

Parker and Oscar sign a partnership agreement to do business as "Parker's Plumbing" without specifying a duration. This partnership is terminable