Exam 38: Operation of Partnerships and Related Forms

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

In the absence of a specific provision in a general partnership agreement, partnership losses will be allocated:

Partners have a right to be indemnified for expenditures they make for the partnership from their personal funds.

Which of the following decisions must be approved by all the partners of a partnership business that provides accounting and auditing services?

Together, express and implied authority constitute _____.

Helen and Casey are partners. Helen contributes capital of $20,000 to the partnership and Casey contributes $10,000. They agree that Helen will receive 60 percent of all profits and that Casey will receive 40 percent. They have not decided how to share losses. The partnership makes a loss of $7,000. What is Casey's share of the loss?

Helen and Casey are partners. Helen contributes capital of $20,000 to the partnership and Casey contributes $10,000. They agree that Helen will receive 60 percent of all profits and that Casey will receive 40 percent. They have not decided how to share losses. The partnership makes a loss of $7,000. What is Helen's share of the loss?

In a partnership, each partner has limited personal liability to partnership creditors.

Hannah is a managing partner of Andrusian Worldwide LLP, an accounting and consulting partnership. Acting within her implied authority, Hannah makes a contract for Andrusian to perform an audit for National Motors Company. The audit fee is $325,000. The performance of the audit takes more hours than Hannah expected, because Hannah has failed to determine the number of locations in which National Motors does business prior to setting the audit fee. As a result, Andrusian loses $50,000 on the audit. Has Hannah breached a fiduciary duty?

Tim is a partner at Starland Properties and gives one of Starland's customer lists to Sun Realty, the firm's leading competitor. In this situation, Tim has violated:

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?

Don is a partner of the firm Shaw Associates, which offers recruitment services. Don entered into a contract with Bradman & Sons to sell the land on which the partnership business is situated for $85,000. Is this contract enforceable?

A partner uses her own truck to pick up some partnership supplies, which she pays for with her personal check. This partner has the right to be _____ for payments made from her personal funds.

A partner may not compete against the partnership unless he or she obtains consent from the other partners.

Which of the following partnerships can be classified as nontrading partnership engaged in providing services?

According to the RUPA, a partner:

Which of the following is true about implied authority?

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.

A partner's express and implied authority constitutes his or her apparent authority.

A partner in a trading partnership ordinarily has implied authority to borrow money for the partnership.